Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 29, 2019 | Feb. 21, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 29, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-37760 | ||
Entity Registrant Name | SiteOne Landscape Supply, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-4056061 | ||
Entity Address, Address Line One | 300 Colonial Center Parkway | ||
Entity Address, Address Line Two | Suite 600 | ||
Entity Address, City or Town | Roswell | ||
Entity Address, State or Province | GA | ||
Entity Address, Postal Zip Code | 30076 | ||
City Area Code | 470 | ||
Local Phone Number | 277-7000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | SITE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 41,789,003 | ||
Entity Public Float | $ 2,824,318,243 | ||
Documents Incorporated by Reference | Portions of the registrant’s proxy statement to be filed with the U.S. Securities and Exchange Commission in connection with the registrant’s 2020 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference into Part III hereof. Such Proxy Statement will be filed within 120 days of the registrant’s fiscal year ended December 29, 2019 . | ||
Entity Central Index Key | 0001650729 | ||
Current Fiscal Year End Date | --12-29 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 19 | $ 17.3 |
Accounts receivable, net of allowance for doubtful accounts of $8.3 and $5.9 for 2019 and 2018, respectively | 283.4 | 285.3 |
Inventory, net | 427.1 | 411.7 |
Income tax receivable | 7 | 10 |
Prepaid expenses and other current assets | 29.3 | 41.1 |
Total current assets | 765.8 | 765.4 |
Property and equipment, net (Note 4) | 104.9 | 88.4 |
Operating lease right-of-use assets, net (Note 6) | 231 | |
Goodwill (Note 5) | 181.3 | 148.4 |
Intangible assets, net (Note 5) | 150.6 | 155.6 |
Deferred tax assets (Note 1 and Note 9) | 1.9 | 0 |
Other assets | 7.8 | 10.7 |
Total assets | 1,443.3 | 1,168.5 |
Current liabilities: | ||
Accounts payable | 162.2 | 184.6 |
Current portion of finance leases (Note 6) | 6.7 | 5.2 |
Current portion of operating leases (Note 6) | 48.6 | |
Accrued compensation | 39.7 | 42.1 |
Long-term debt, current portion (Note 8) | 4.5 | 4.5 |
Accrued liabilities | 49.1 | 46 |
Total current liabilities | 310.8 | 282.4 |
Other long-term liabilities | 13.2 | 14 |
Finance leases, less current portion (Note 6) | 16.2 | 9.5 |
Operating leases, less current portion (Note 6) | 186.3 | |
Deferred tax liabilities (Note 1 and Note 9) | 3.2 | 7.1 |
Long-term debt, less current portion (Note 1 and Note 8) | 520.4 | 553.7 |
Total liabilities | 1,050.1 | 866.7 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity (Note 1): | ||
Common stock, par value $0.01; 1,000,000,000 shares authorized; 41,591,727 and 40,910,992 shares issued, and 41,570,816 and 40,890,081 shares outstanding at December 29, 2019 and December 30, 2018, respectively | 0.4 | 0.4 |
Additional paid-in capital | 261.5 | 242.1 |
Retained earnings | 137.8 | 60.1 |
Accumulated other comprehensive loss | (6.5) | (0.8) |
Total stockholders’ equity | 393.2 | 301.8 |
Total liabilities and stockholders’ equity | $ 1,443.3 | $ 1,168.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Statement of Financial Position [Abstract] | ||||
Allowance for doubtful accounts | $ 8.3 | $ 5.9 | $ 4.7 | $ 4.3 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | ||
Common stock, shares issued | 41,591,727 | 40,910,992 | ||
Common stock, shares outstanding | 41,570,816 | 40,890,081 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 2,357.5 | $ 2,112.3 | $ 1,861.7 |
Cost of goods sold | 1,584.3 | 1,434.2 | 1,266.2 |
Gross profit | 773.2 | 678.1 | 595.5 |
Selling, general and administrative expenses | 654.3 | 578.8 | 502.2 |
Other income | 6 | 8 | 4.5 |
Operating income | 124.9 | 107.3 | 97.8 |
Interest and other non-operating expenses | 33.4 | 32.1 | 25.2 |
Income before taxes | 91.5 | 75.2 | 72.6 |
Income tax expense | 13.8 | 1.3 | 18 |
Net income | $ 77.7 | $ 73.9 | $ 54.6 |
Net income per common share: | |||
Basic (in dollars per share) | $ 1.89 | $ 1.83 | $ 1.37 |
Diluted (in dollars per share) | $ 1.82 | $ 1.73 | $ 1.29 |
Weighted average number of common shares outstanding: | |||
Basic (shares) | 41,218,843 | 40,488,196 | 39,754,595 |
Diluted (shares) | 42,750,348 | 42,633,309 | 42,193,432 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 77.7 | $ 73.9 | $ 54.6 |
Foreign currency translation adjustments | 0.5 | (0.8) | 0.5 |
Unrealized gain (loss) on interest rate swaps, net of taxes of $2.3, ($0.2), and ($0.2), respectively | (6.2) | 0.3 | 0.4 |
Comprehensive income | $ 72 | $ 73.4 | $ 55.5 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on interest rate swaps, tax | $ 2.3 | $ (0.2) | $ (0.2) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in-Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) |
Stockholders' equity attributable to parent, beginning balance at Jan. 01, 2017 | $ 148.8 | $ 0.4 | $ 219.3 | $ (69.7) | $ (1.2) |
Shares, beginning balance (shares) at Jan. 01, 2017 | 39,576,600 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 54.6 | 54.6 | |||
Other comprehensive income (loss) | 0.9 | 0.9 | |||
Issuance of common shares under stock based compensation plan | 2.6 | 2.6 | |||
Issuance of common shares under stock based compensation plan (in shares) | 379,600 | ||||
Stock based compensation | 5.9 | 5.9 | |||
Stockholders' equity attributable to parent, ending balance at Dec. 31, 2017 | 212.8 | $ 0.4 | 227.8 | (15.1) | (0.3) |
Shares, ending balance (shares) at Dec. 31, 2017 | 39,956,200 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 73.9 | 73.9 | |||
Other comprehensive income (loss) | (0.5) | (0.5) | |||
Issuance of common shares under stock based compensation plan | 6.4 | 6.4 | |||
Issuance of common shares under stock based compensation plan (in shares) | 933,900 | ||||
Stock based compensation | 7.9 | 7.9 | |||
Stockholders' equity attributable to parent, ending balance at Dec. 30, 2018 | 301.8 | $ 0.4 | 242.1 | 60.1 | (0.8) |
Shares, ending balance (shares) at Dec. 30, 2018 | 40,890,100 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 77.7 | 77.7 | |||
Other comprehensive income (loss) | (5.7) | (5.7) | |||
Issuance of common shares under stock based compensation plan | 7.7 | 7.7 | |||
Issuance of common shares under stock based compensation plan (in shares) | 680,700 | ||||
Stock based compensation | 11.7 | 11.7 | |||
Stockholders' equity attributable to parent, ending balance at Dec. 29, 2019 | $ 393.2 | $ 0.4 | $ 261.5 | $ 137.8 | $ (6.5) |
Shares, ending balance (shares) at Dec. 29, 2019 | 41,570,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income | $ 77.7 | $ 73.9 | $ 54.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of finance lease right-of-use assets and depreciation | 25.1 | 21.5 | 17.6 |
Stock-based compensation | 11.7 | 7.9 | 5.9 |
Amortization of software and intangible assets | 34.4 | 30.8 | 25.5 |
Amortization of debt related costs | 2 | 3.1 | 3 |
Loss on extinguishment of debt | 0.4 | 0.7 | 0.1 |
(Gain) loss on sale of equipment | 0.3 | (0.4) | 0.6 |
Deferred income taxes | (3.4) | (7.1) | (16.5) |
Other | 0.9 | (0.6) | 0.1 |
Changes in operating assets and liabilities, net of the effects of acquisitions: | |||
Receivables | 6.1 | (43.4) | (40.5) |
Inventory | (3) | (38.5) | (31) |
Income tax receivable | 3 | (6) | (1) |
Prepaid expenses and other assets | 7.5 | (8.9) | (12.2) |
Accounts payable | (29) | 40.4 | 7.1 |
Accrued expenses and other liabilities | (2.9) | 4.7 | 3 |
Net Cash Provided By Operating Activities | 130.8 | 78.1 | 16.3 |
Cash Flows from Investing Activities: | |||
Purchases of property and equipment | (19.5) | (14.9) | (14.5) |
Purchases of intangible assets | (1.9) | (5) | (1.5) |
Acquisitions, net of cash acquired | (71.5) | (147.7) | (82.9) |
Proceeds from the sale of property and equipment | 1 | 3.5 | 0.3 |
Net Cash Used In Investing Activities | (91.9) | (164.1) | (98.6) |
Cash Flows from Financing Activities: | |||
Equity proceeds from common stock | 8.4 | 6.7 | 2.7 |
Borrowings under term loan | 0 | 447.4 | 649.5 |
Repayments under term loan | (4.5) | (350.3) | (598.3) |
Borrowings on asset-based credit facility | 273.7 | 406 | 386.4 |
Repayments on asset-based credit facility | (304) | (410) | (350.4) |
Payments of debt issue costs | (0.9) | (2.4) | (2.2) |
Payments on finance lease obligations | (6.5) | (6.2) | (5.1) |
Payments of acquisition related contingent obligations | (3) | (4) | 0 |
Other financing activities | (0.5) | (0.4) | (0.1) |
Net Cash (Used In) Provided By Financing Activities | (37.3) | 86.8 | 82.5 |
Effect of exchange rate on cash | 0.1 | (0.2) | 0.2 |
Net Change In Cash | 1.7 | 0.6 | 0.4 |
Cash and cash equivalents: | |||
Beginning | 17.3 | 16.7 | 16.3 |
Ending | 19 | 17.3 | 16.7 |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid during the year for interest | 30.3 | 26.2 | 23.9 |
Cash paid during the year for income taxes | $ 16 | $ 14.5 | $ 35.9 |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of business: SiteOne Landscape Supply, Inc. (hereinafter collectively with all its consolidated subsidiaries referred to as the “Company” or individually as “Holdings”) is a wholesale distributor of irrigation supplies, fertilizer and control products (e.g., herbicides), landscape accessories, nursery goods, hardscapes (including pavers, natural stone, and blocks), outdoor lighting, and ice melt products to green industry professionals. The Company also provides value-added consultative services to complement its product offering and to help customers operate and grow their businesses. Substantially all of the Company’s sales are to customers located in the United States of America (“U.S.”), with less than two percent of sales and total assets in Canada for all periods presented. As of December 29, 2019 , the Company had over 550 branches. Based on the nature of the Company’s products and customers’ business cycles, sales are significantly higher in the second and third quarters of each fiscal year. Refinancing and Amendments of Term Loan On August 14, 2018, the Company amended the Term Loan Facility (the “Fourth Amendment”) to, among other things, (i) add an additional credit facility under the Term Loan Facility consisting of additional term loans (the “Tranche E Term Loans”) in an aggregate principal amount of $347.4 million and (ii) increase the aggregate principal amount of Tranche E Term Loans under the Term Loan Facility to $447.4 million . Proceeds of the Tranche E Term Loans were used to, among other things, (i) repay in full the Tranche D Term Loans and (ii) repay approximately $96.8 million of borrowings outstanding under the ABL Facility. Secondary Offerings On April 25, 2017, the Company’s registration statement on Form S-1 (Registration No. 333-217327) relating to a secondary offering of its common stock was declared effective by the SEC. On May 1, 2017, the Company completed this secondary offering at a price to the public of $47.50 per share. In connection with this secondary offering, certain of the Company’s stockholders sold an aggregate of 10,000,000 shares of common stock. The underwriters also exercised their option to purchase an additional 1,500,000 shares of common stock from the selling stockholders at the public offering price less the underwriting discounts and commissions. The selling stockholders received all of the net proceeds and bore all commissions and discounts from the sale of the Company’s common stock. The Company did not receive any proceeds from this secondary offering. On July 20, 2017, the Company’s shelf registration statement on Form S-3 (Registration No. 333-219370) became effective, registering the offering and sale from time to time, by certain selling stockholders, of 5,437,502 shares of the Company’s common stock. On July 26, 2017, the selling stockholders completed a secondary offering of all such shares at a price to the underwriter of $51.63 per share. The selling stockholders received all of the net proceeds and bore all commissions and discounts from the sale of the Company’s common stock. The Company did not receive any proceeds from this secondary offering. Basis of Financial Statement Presentation Holdings indirectly owns 100% of the membership interest in SiteOne Landscape Supply Holding, LLC (referred to herein as “Landscape Holding”). Landscape Holding is parent and sole owner of SiteOne Landscape Supply, LLC (referred to herein as “Landscape”). Prior to the transaction described below, Deere & Company (“Deere”) was the sole owner of SiteOne Landscape Supply Holding, LLC. On December 23, 2013 (the “Closing Date”), the Company acquired 100% of the ownership interest in Landscape Holding from Deere in exchange for common shares of the Company initially representing 40% of the outstanding capital stock (on an as-converted basis) plus cash consideration of approximately $314 million , net of pre-closing and post-closing adjustments. In order to facilitate the transaction, the Company issued Redeemable Convertible Preferred Stock to Clayton, Dubilier & Rice, LLC (“CD&R”) for total consideration of $174 million initially representing 60% of the outstanding capital stock (on an as-converted basis). As part of the same transaction, Landscape Holding also acquired from Deere the affiliated company LESCO, Inc. (“LESCO”). The Company continues to be the sole owner of Landscape Holding. The aforementioned transactions described in this paragraph are referred to herein as the “CD&R Acquisition”. Following consummation of the secondary offering on July 26, 2017, CD&R and Deere no longer have an ownership interest in the Company. The Company’s chief operating decision maker (“CODM”) manages the business as a single reportable segment. Within the organizational framework, the same operational resources support multiple geographical regions and performance is evaluated primarily by the CODM at a consolidated level. The CODM also evaluates regional performance based on financial and operational measures and receives discrete financial information on a regional basis. Since all of the Company’s regions have similar operations and share similar economic characteristics, the Company aggregates regions into a single operating and reportable segment. These similarities include 1) long-term financial performance, 2) the nature of products and services, 3) the types of customers the Company sells to, and 4) the distribution methods used. Further, all of the Company’s product categories have similar supply chain processes, classes of customers, and economic characteristics. The accompanying audited consolidated financial statements of the Company included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Consolidated Statements of Operations, Comprehensive income (loss), Equity, and Cash Flows for the Company are presented for the fiscal years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 . The consolidated financial statements for the Company include the assets and liabilities used in operating the Company’s business, including entities in which the Company owns or controls more than 50% of the voting shares. All of the Company’s subsidiaries are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. Significant accounting policies: Use of estimates in the preparation of financial statements : The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fiscal year : The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to December 31. The years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 each included 52 weeks. Cash and cash equivalents : Cash and cash equivalents include primarily cash on deposit with banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in these accounts. Cash and cash equivalents also include unsettled credit card transactions. Accounts receivable : The Company carries accounts receivable at the original invoice amount, less any charge-offs and the allowance for credit losses and doubtful accounts. Allowances for credit losses and doubtful accounts are maintained in amounts considered to be appropriate in relation to the receivables outstanding based on collection experience, economic conditions, and credit risk quality. Receivables are written-off to the allowance when an account is considered uncollectible. Activity in the allowance for doubtful accounts for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 5.9 $ 4.7 $ 4.3 Provision (reduction) for allowance 5.9 2.9 2.0 Write-offs, net of recoveries (3.5 ) (1.7 ) (1.6 ) Ending balance $ 8.3 $ 5.9 $ 4.7 Inventory : The majority of the Company’s inventories are valued at the lower of cost or net realizable value, with cost determined by the first-in, first-out (“FIFO”) method. Inventory is primarily considered to be finished goods. The Company establishes a reserve for excess, slow-moving, and obsolete inventory that is equal to the difference between the cost and estimated net realizable value for that inventory. These reserves are based on a review of planned and historical sales. The reserve for obsolete and excess inventory was approximately $8.0 million and $6.8 million as of December 29, 2019 and December 30, 2018 , respectively. Property and equipment, net : Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed on property and equipment using the straight-line method over the estimated useful lives of the assets, as noted below. Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining lease terms. The amortization of the right-of-use assets under finance leases, which prior to fiscal year 2019 were known as capital leases, is included in amortization expense. Expenditures for replacement or major renewals of significant items are capitalized. Expenditures for maintenance, repairs, and minor renewals are generally charged to expense as incurred. Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Acquisitions : When the Company acquires a controlling financial interest in an entity or group of assets that are determined to meet the definition of a business, the acquisition method described in ASC Topic 805, Business Combinations, is applied. The Company allocates the purchase consideration paid to acquire the business to the assets and liabilities acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. If during the measurement period (a period not to exceed 12 months from the acquisition date) the Company receives additional information that existed as of the acquisition date but at the time of the original allocation described above was unknown, the Company makes the appropriate adjustments to the purchase price allocation in the reporting period in which the adjustments are identified. Goodwill impairment : Goodwill represents the acquired fair value of a business in excess of the fair values of tangible and identified intangible assets acquired and liabilities assumed. The Company tests goodwill on an annual basis as of July fiscal month-end and additionally if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Examples of such indicators include a significant change in the business climate, unexpected competition, loss of key personnel or a decline in the Company’s market capitalization below the Company’s net book value. The Company performs impairment assessments at the reporting unit level, which is defined as an operating segment or one level below an operating segment, also known as a component. With the issuance of Accounting Standards Update 2017-04 Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) in January 2017, the impairment test is now a single-step process. The process requires the Company to estimate and compare the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value exceeds the carrying amount, the goodwill is not considered impaired. To the extent a reporting unit’s carrying amount exceeds its fair value, the reporting unit’s goodwill is deemed impaired, and an impairment charge is recognized based on the excess of a reporting unit’s carrying amount over its fair value . The Company adopted ASU 2017-04 in July 2017 with its annual goodwill impairment test. No impairment of goodwill has occurred during the periods presented. Refer to Note 5 for a more detailed description of goodwill. Intangible assets, net : Intangible assets include customer relationships, and trademarks and other intangibles, acquired through acquisitions. The fair value of customer relationships is determined using the multi-period excess earnings method, which is a specific discounted cash flow method that requires management to make significant estimates and assumptions, including the selection of the discount rates. Intangibles assets with finite useful lives are amortized on an accelerated method or a straight-line of amortization over their estimated useful lives. An accelerated amortization method reflecting the pattern in which the asset will be consumed is utilized if that pattern can be reliably determined. If that pattern cannot be reliably determined, a straight-line amortization method is used. The Company considers the period of expected cash flows and the underlying data used to measure the fair value of the intangible assets when selecting a useful life. The majority of customer relationships are amortized on an accelerated method. Refer to Note 5 for more information regarding intangible assets amortization. Impairment of long-lived assets : Long-lived assets, primarily property and equipment, finite-lived intangible assets, and long-term contracts included in other assets, are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The recoverability of an asset group is measured by a comparison of the carrying amount of the asset group to its future undiscounted cash flows. If the recoverability test indicates the asset group balances are not recoverable, the Company would recognize an impairment charge to reduce the long-lived asset balances based on the fair value of the asset group. The amount of such impairment would be charged to operations in the current period. There were no impairment charges recognized during the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 . Fair value measurement : Fair value is defined as an exit price, representing an amount that would be received to sell an asset or the amount paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The inputs used to measure fair value are prioritized into the following three-tiered value hierarchy: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, which are observable either directly or indirectly. • Level 3: Unobservable inputs for which there is little or no market data. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurement within the hierarchy is based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts receivables, and long-term debt. The variable interest rate on the long-term debt is reflective of current market borrowing rates. As such, the Company has determined that the carrying value of these financial instruments approximates fair value. Interest Rate Swaps : The Company utilizes interest rate swap contracts to reduce its exposure to fluctuations in variable interest rates for future interest payments on its syndicated senior Term Loan Facility. For determining the fair value of the interest rate swap contracts, the Company uses significant observable market data or assumptions (Level 2 inputs) that market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves. The Company has designated these swaps as cash flow hedges, for which the Company records the effective portions of changes in the fair value, net of tax, in other comprehensive income (loss). To the extent the interest rate swaps are determined to be ineffective, the Company recognizes the changes in the estimated fair value of the swaps in earnings. Revenue recognition : The Company recognizes revenue when control over a product or service is transferred to a customer. This transfer occurs primarily when goods are picked up by a customer at the branch or when goods are delivered to a customer location. Revenue is measured at the transaction price, which is based on the amount of consideration the Company expects to receive in exchange for transferring the promised goods or services to the customer. The transaction price will include estimates of variable consideration, such as returns and provisions for doubtful accounts and sales incentives, to the extent it is probable that a significant reversal of revenue recognized will not occur. In all cases, when a sale is recorded by the Company, no significant uncertainty exists surrounding the purchaser’s obligation to pay. Net sales include billings for freight and handling charges and commissions on the sale of control products that we sell as an agent. Net sales are presented net of any discounts, returns, customer rebates, and sales or other revenue-based taxes. Provisions for returns are estimated and accrued at the time a sale is recognized. The Company also has entered into agency agreements with certain of its suppliers whereby the Company operates as a sales agent of those suppliers. The suppliers retain title to their merchandise until it is sold by the Company and determine the prices at which the Company can sell their merchandise. The Company recognizes these agency sales on a net basis and records only the product margin as commission revenue within Net sales. Sales incentives : The Company offers certain customers rebates which are accrued based on sales volumes. In addition, the Company offers a points-based reward program which allows enrolled customers to earn loyalty rewards on purchases to be used on future purchases, to pay for annual customer trips hosted by the Company, or to obtain gift cards to other third-party retailers. The Company often receives cash payments from customers in advance of the Company’s performance of the customer loyalty reward program resulting in contract liabilities. These contract liabilities are classified as current in the Company’s Consolidated Balance Sheets. Contract liabilities are reported on the Company’s Consolidated Balance Sheets on a contract-by-contract basis. Sales taxes : The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with revenue producing transactions between the Company and its customers. These taxes may include sales, use, value-added, and some excise taxes. The Company reports the collection of these taxes on a net basis (excluded from sales). Cost of goods sold : Cost of goods sold includes all inventory costs, such as purchase price from suppliers, net of any volume-based incentives, as well as inbound freight and handling, and other costs associated with the inventory, and is exclusive of the costs to deliver the products to customers. Shipping and handling costs : Shipping and handling costs associated with inbound freight are included in Cost of goods sold. Warranty reserves : Provisions for estimated warranty costs for the return of nursery products are provided for in the same period the related sales are recorded. The Company offers product warranties on selected nursery items. The warranty reserve is based on historical and current trends. The warranty reserve included in Accrued liabilities was approximately $0.2 million and $0.5 million as of December 29, 2019 and December 30, 2018 , respectively. Leases : The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Finance lease obligations consist primarily of the Company’s vehicle fleet. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases include options to purchase the leased property. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component. The Company also elected the package of practical expedients, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities. These payments are expensed as incurred and recorded as variable lease expense. ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. ROU assets also include any advance lease payments and are adjusted for lease incentives. As most of the Company's operating leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease amortization expense are recognized on a straight-line basis over the lease term. Refer to Note 6 for further details regarding leases. Advertising costs : Advertising costs are charged to expense as incurred and were approximately $3.3 million , $3.1 million , and $2.1 million , during the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. Stock-based compensation : The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized on a straight-line basis over the requisite service period based on the portion of the award that is expected to vest. Stock-based compensation expense for restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The Company utilizes the Black-Scholes option pricing model to estimate the grant-date fair value of option awards. The exercise price of option awards is set to equal the value of the common stock at the date of the grant. The following weighted-average assumptions are also used to calculate the estimated fair value of option awards: • Expected volatility: The expected volatility of the Company’s shares is estimated using the historical stock price volatility over the most recent period commensurate with the estimated expected term of the awards. • Expected term: For employee stock option awards, the Company determines the weighted average expected term equal to the weighted period between the vesting period and the contract life of all outstanding options. • Dividend yield: The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero . • Risk-free interest rate: The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the estimated expected term of the awards. Refer to Note 7 for further details regarding stock-based compensation. Other income : Other income consists primarily of financing charges, net gain/loss on sale of assets, and the fair value adjustments of acquisition related contingent obligations. Income taxes : The Company files a consolidated federal income tax return and files both combined or unitary state income tax returns as well as separate state income tax returns in certain jurisdictions. Deferred taxes are provided on an asset and liability method in which deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent upon sufficient future taxable income. The Company’s operations involve dealing with uncertainties and judgments in the application of complex tax regulations in a multitude of jurisdictions. The Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return based on its estimate of whether, and the extent to which, additional taxes will be due. The Company recognizes interest, if any, related to unrecognized tax benefits within Interest and other non-operating expenses, and recognizes penalties in Selling, general and administrative expenses. In December 2017, the Tax Cuts and Jobs Act (the “2017 Tax Act”) was enacted, which included several changes to existing U.S. tax laws that impacted the Company, most notably a reduction of the U.S. corporate income tax rate from 35% to 21%. The reduced tax rate is reflected in the Company’s Income tax expense for the years ended December 29, 2019, and December 30, 2018, respectively. In addition, the 2017 Tax Act provided a substantial deferred tax benefit, as part of the Company’s overall Income tax expense, for the year ended December 31, 2017. Refer to Note 9 for further information pertaining to income taxes. Foreign currency translation : The functional currency for the Company’s Canadian operations is the Canadian dollar, the local currency. The assets and liabilities of these operations are translated into U.S. dollars at the end of the period exchange rates. The revenues and expenses are translated at average exchange rates for the period. The gains or losses from these translations are recorded in other comprehensive income (loss). Gains or losses recognized on transactions denominated in a currency other than the functional currency are included in Net income (loss). Recently Issued and Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory” (“ASU 2015-11”), which requires entities to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The Company adopted ASU 2015-11 when it became effective in the first quarter of the 2017 Fiscal Year. The adoption of ASU 2015-11 did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “ Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted ASU 2016-09 when it became effective in the first quarter of fiscal year 2017 on a prospective basis and as such, the Company’s prior year presentation has not changed. The primary impact of the adoption was the recognition of excess tax benefits as a component of Income tax expense on the Company’s Consolidated Statements of Operations. Historically, these amounts were recorded as Additional paid-in capital in Stockholders’ equity on the Company’s Consolidated Balance Sheets. The Company also elected to adopt the cash flow presentation of the excess tax benefits prospectively commencing in the first quarter of 2017. The Company presents excess tax benefits or tax deficiencies within operating cash flows versus financing activities on the Consolidated Statements of Cash Flows. Another impact of the adoption is that the calculation of the effect of dilutive securities excludes any derived excess tax benefits or deficiencies from assumed future proceeds, resulting in an increase in diluted weighted average shares outstanding. Additionally, the Company elected to account for forfeitures of share-based payments as they occur and there was no material financial impact as a result. None of the other provisions in ASU 2016-09 had a material impact on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (also known as Step 2 under the current guidance). Rather, the measurement of a goodwill impairment charge is based on the excess of a reporting unit’s carrying value over its fair value (Step 1 under the current guidance). ASU 2017-04 will be effective for annual and interim goodwill impairment tests performed in periods beginning after December 15, 2019 and should be applied prospectively. Early adoption is permitted for annual and interim goodwill impairment tests beginning after January 1, 2017. The Company adopted ASU 2017-04 in July 2017 with its annual goodwill impairment test. The adoption of ASU 2017-04 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ” (“ASU 2017-12”), which seeks to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. Additionally, ASU 2017-12 made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP based on the feedback received from preparers, auditors, users, and other stakeholders. ASU 2017-12 added new disclosure requirements, amended existing ones, and removed the requirement for entities to disclose amounts of hedge ineffectiveness. In addition, an entity must provide tabular disclosures regarding: both (i) the total amounts reported in the statement of financial performance for each income and expense line item that is affected by fair value or cash flow hedging and (ii) the effects of hedging on those line items; and the carrying amounts and cumulative basis adjustments of items designated and qualifying as hedged items in fair value hedges. Early ado |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table presents Net sales disaggregated by product category: For the year December 31, 2018 to December 29, 2019 For the year January 1, 2018 to December 30, 2018 For the year January 2, 2017 to December 31, 2017 Landscaping products (a) $ 1,670.7 $ 1,468.4 $ 1,265.4 Agronomic and other products (b) 686.8 643.9 596.3 $ 2,357.5 $ 2,112.3 $ 1,861.7 ______________ (a) Landscaping products include irrigation, nursery, hardscapes, outdoor lighting, and landscape accessories. (b) Agronomic and other products include fertilizer, control products, ice melt, equipment, and other products. Remaining Performance Obligations Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. Remaining performance obligations include the outstanding points balance related to the customer loyalty reward program. The program allows enrolled customers to earn loyalty rewards on purchases to be used on future purchases, to pay for annual customer trips hosted by the Company, or to obtain gift cards to other third-party retailers. As of December 29, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $6.5 million . The Company expects to recognize revenue on the remaining performance obligations over the next 12 months. Contract Balances The timing of revenue recognition, billings, and cash collections results in billed accounts receivable, deferred revenue, and billings in excess of revenue recognized in the Company’s Consolidated Balance Sheets. Contract liabilities As of December 29, 2019 and December 30, 2018 , contract liabilities were $6.5 million and $7.4 million , respectively, and are included within Accrued liabilities in the accompanying Consolidated Balance Sheets. The decrease in the contract liability balance during the year ended December 29, 2019 is primarily a result of the $8.8 million of revenue recognized and the expiration of points related to the customer loyalty reward program during the period, partially offset by cash payments received in advance of satisfying performance obligations. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 29, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions From time to time the Company enters into strategic acquisitions in an effort to better service existing customers and to attract new customers. The Company made various acquisitions during the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 . The following acquisitions had an aggregate purchase price of approximately $70.7 million , $148.9 million , $83.1 million , and deferred contingent consideration of approximately $6.4 million , $5.7 million , and $5.0 million , for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. The aggregate assets acquired were approximately $69.5 million , $142.2 million , and $67.6 million , aggregate liabilities assumed were approximately $22.1 million , $29.3 million , and $15.4 million , and excess purchase price attributed to goodwill acquired were approximately $29.7 million , $41.7 million , and $35.9 million for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. The Company has completed the acquisition accounting for each acquisition made during the 2017, Fiscal Year the 2018 Fiscal Year, and the acquisition of Cutting Edge Curbing Sand & Rock in January 2019, All Pro Horticulture, Inc. in February 2019, Landscape Depot, Inc. in April 2019, and Fisher’s Landscape Depot in April 2019. The Company has recorded preliminary acquisition accounting transactions for the remaining acquisitions completed during the 2019 Fiscal Year their estimated fair values as of the respective acquisition dates. • In December 2019, the Company acquired the assets and assumed the liabilities of Daniel Stone & Landscaping Supplies, Inc. (“Daniel Stone”). With one location in the greater Austin, Texas market, Daniel Stone is a distributor of hardscapes and landscape supplies to landscape professionals. • In December 2019, the Company acquired all of the members’ interests of Dirt Doctors, Inc. (“Dirt Doctors”). With three locations in the greater New England market, Dirt Doctors is a distributor of hardscapes and landscape supplies to landscape professionals. • In September 2019, the Company acquired the assets and assumed the liabilities of Design Outdoor, Inc. (“Design Outdoor”). With one location in the greater Reno/Lake Tahoe, Nevada area, Design Outdoor is a distributor of hardscapes products to landscape professionals. • In August 2019, the Company acquired the assets and assumed the liabilities of Trendset Concrete Products, Inc. (“Trendset”). With one location in the greater Seattle, Washington market, Trendset is a distributor of hardscapes products to landscape professionals. • In July 2019, the Company acquired the assets and assumed the liabilities of L.H. Voss Materials Dublin and its affiliates, Mt. Diablo Landscape Centers and Clark’s Home & Garden (collectively, “Voss”). With five locations across the East Bay in Northern California, Voss is a distributor of hardscapes and landscape supplies to landscape professionals. • In May 2019, the Company acquired the assets and assumed the liabilities of Stone and Soil Depot, Inc. (“Stone and Soil”). With three locations in the greater San Antonio, Texas market, Stone and Soil is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In April 2019, the Company acquired the assets and assumed the liabilities of Fisher’s Landscape Depot (“Fisher’s”). With two locations in Western Ontario, Canada, Fisher’s is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In April 2019, the Company acquired the assets and assumed the liabilities of Landscape Depot, Inc. (“Landscape Depot”). With three locations in the greater Boston, Massachusetts market, Landscape Depot is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In February 2019, the Company acquired the assets and assumed the liabilities of All Pro Horticulture, Inc. (“All Pro”). With one location in Long Island, New York, All Pro is a market leader in the distribution of agronomics and erosion control products to landscape professionals. • In January 2019, the Company acquired the assets and assumed the liabilities of Cutting Edge Curbing Sand & Rock (“Cutting Edge”). With one location in Phoenix, Arizona, Cutting Edge is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In December 2018, the Company acquired the assets and assumed the liabilities of All Around Landscape Supply and Santa Ynez Stone & Topsoil (“All Around”). With four locations in Santa Barbara County, California, All Around is a market leader in the distribution of irrigation, hardscapes, and landscape supplies to landscape professionals. • In October 2018, the Company acquired the assets and assumed the liabilities of C&C Sand and Stone (“C&C”). With four locations in Colorado, C&C is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In July 2018, the Company acquired the assets and assumed the liabilities of Central Pump & Supply, Inc. d/b/a CentralPro (“CentralPro”). With 11 locations throughout Central Florida, CentralPro is a market leader in the distribution of irrigation, lighting, and drainage products to landscape professionals. • In July 2018, the Company acquired the assets and assumed the liabilities of Stone Center LC (“Stone Center”). With one location in Manassas, Virginia, Stone Center is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In July 2018, the Company acquired the outstanding stock of Koppco, Inc. and Kirkwood Material Supply, Inc. (collectively “Kirkwood”). With eight locations in the St. Louis, Missouri metropolitan area, Kirkwood is a market leader in the distribution of hardscapes and nursery supplies to landscape professionals. • In July 2018, the Company acquired the outstanding stock of LandscapeXpress, Inc. (“Landscape Express”). With four locations in the Boston, Massachusetts metropolitan area, Landscape Express is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals. • In June 2018, the Company acquired the assets and assumed the liabilities of Southwood Valley Turf II, Ltd, d/b/a All American Stone and Turf (“All American”). With one location in College Station, Texas, All American is a market leader in the distribution of hardscapes and landscape supplies to landscape professionals in East Texas. • In June 2018, the Company acquired the outstanding stock of Auto-Rain Supply Inc. (“Auto-Rain”). With five locations in Washington and Idaho, Auto-Rain is a market leader in the distribution of irrigation and related products to landscape professionals. • In May 2018, the Company acquired the assets and assumed the liabilities of Landscaper’s Choice Wholesale Nursery and Supply (“Landscaper’s Choice”). With two locations in Naples and Bonita Springs, Florida, Landscaper’s Choice is a market leader in wholesale nursery distribution. • In April 2018, the Company acquired the assets and assumed the liabilities of Northwest Marble & Terrazzo Co. (“Terrazzo”). With two locations in Bellevue and Marysville, Washington, Terrazzo is a market leader in the distribution of natural stone and hardscapes material to landscape professionals. • In March 2018, the Company acquired the assets and assumed the liabilities of the distribution locations of Village Nurseries Landscape Centers (“Village”). With three locations in Orange, Huntington Beach, and Sacramento, California, Village is a market leader in wholesale nursery distribution. • In February 2018, the Company acquired the outstanding stock of Atlantic Irrigation Specialties, Inc. and the limited liability company interests of Atlantic Irrigation South, LLC (collectively, “Atlantic”). With 33 locations in 12 states within the Eastern U.S. and two provinces in Eastern Canada, Atlantic is a market leader in the distribution of irrigation, lighting, drainage, and landscaping equipment to green industry professionals. • In January 2018, the Company acquired the assets and assumed the liabilities of Pete Rose, Inc. (“Pete Rose”). With one location in Richmond, Virginia, Pete Rose is a market leader in the distribution of natural stone and hardscapes material to landscape professionals. • In October 2017, the Company acquired the assets and assumed the liabilities of Harmony Gardens, Inc. (“Harmony Gardens”). With two locations in the metro Denver and Fort Collins, Colorado areas, Harmony Gardens is a leading wholesale nursery distributor in the state. • In September 2017, the Company acquired the assets and assumed the liabilities of Marshall Stone, Inc. and Davis Supply, LLC (collectively, “Marshall Stone”). With two locations in Greensboro, North Carolina and Roanoke, Virginia, Marshall Stone is a market leader in the distribution of natural stone and hardscapes materials to landscape professionals. • In August 2017, the Company acquired the assets and assumed the liabilities of Bondaze Enterprises, Inc., a California corporation doing business as South Coast Supply (“South Coast Supply”). With two locations in Orange County, California, South Coast Supply is a market leader in the distribution of hardscapes, natural stone and related products to landscape professionals. • In May 2017, the Company acquired the assets and assumed the liabilities of Evergreen Partners of Raleigh, LLC, Evergreen Partners of Myrtle Beach, LLC, and Evergreen Logistics, LLC (collectively, “Evergreen”). With two locations in Raleigh, North Carolina and Myrtle Beach, South Carolina, Evergreen is a market leader in the distribution of nursery supplies to landscape professionals. • In March 2017, the Company acquired the assets and assumed the liabilities of Angelo’s Supplies, Inc. and Angelo’s Wholesale Supplies, Inc. (collectively, “Angelo’s”) with two locations in Wixom and Farmington Hills, Michigan, both suburbs of Detroit. Angelo’s is a hardscape and landscape supply distributor and has been a market leader since 1984. • In March 2017, the Company acquired all of the outstanding stock of American Builders Supply, Inc. and MasonryClub, Inc. and subsidiary (collectively, “AB Supply”) with 10 locations in the greater Los Angeles, California area and two locations in Las Vegas, Nevada. AB Supply is a market leader in the distribution of hardscape, natural stone and related products to landscape professionals. • In February 2017, the Company acquired the assets and assumed the liabilities of Stone Forest Materials, LLC (“Stone Forest”) with one location in Kennesaw, Georgia. Stone Forest is a market leader in the distribution of hardscape products to landscape professionals. • In January 2017, the Company acquired the assets and assumed the liabilities of Aspen Valley Landscape Supply, Inc. (“Aspen Valley”) with three locations. Headquartered in Homer Glen, Illinois, Aspen Valley is a market leader in the distribution of hardscapes and landscape supplies in the Chicago Metropolitan Area. These transactions were accounted for by the acquisition method, and accordingly the results of operations were included in the Company’s consolidated financial statements from their respective acquisition dates. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment consisted of the following (in millions): December 29, 2019 December 30, 2018 Land $ 12.2 $ 12.2 Buildings and leasehold improvements: Buildings 7.8 7.9 Leasehold improvements 25.5 20.5 Branch equipment 47.9 36.8 Office furniture and fixtures and vehicles: Office furniture and fixtures 21.4 19.1 Vehicles 30.2 58.1 Finance lease right-of-use assets 46.3 — Tooling 0.1 0.1 Construction in process 2.9 2.0 Total Property and equipment, gross 194.3 156.7 Less: accumulated depreciation and amortization 89.4 68.3 Total Property and equipment, net $ 104.9 $ 88.4 Amortization of finance ROU assets and depreciation expense was approximately $25.1 million for the year ended December 29, 2019 , and depreciation expense was $21.5 million and $17.6 million for the years ended December 30, 2018 and December 31, 2017 , respectively. Capitalized software has an estimated useful life of three years . The amounts of total capitalized software costs, including purchased and internally developed software, included in Other assets at December 29, 2019 and December 30, 2018 were approximately $10.9 million and $8.9 million , less accumulated amortization of approximately $7.4 million and $5.2 million , respectively. Amortization of these software costs was approximately $2.1 million , $2.1 million and $1.6 million for the years ended December 29, 2019 , December 30, 2018 and December 31, 2017 , respectively. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill The changes in the carrying amount of goodwill for the years ended December 29, 2019 and December 30, 2018 are as follows (in millions): For the year For the year Beginning balance $ 148.4 $ 106.5 Goodwill acquired during the year 29.7 41.7 Goodwill adjusted during the year 3.2 0.2 Ending balance $ 181.3 $ 148.4 Additions to goodwill during the years ended December 29, 2019 and December 30, 2018 related to the acquisitions during the 2019 Fiscal Year and the 2018 Fiscal Year as described in Note 3 . There have been no impairments of our goodwill for the years ended December 29, 2019 and December 30, 2018 . Intangible Assets The following table summarizes the components of intangible assets (in millions): December 29, 2019 December 30, 2018 Weighted Average Remaining Useful Life (in Years) Amount Accumulated Net Amount Accumulated Net Customer relationships 16.9 years $ 267.9 $ 124.4 $ 143.5 $ 243.0 $ 95.6 $ 147.4 Trademarks and other 3.3 years 17.0 9.9 7.1 14.6 6.4 8.2 Total intangibles $ 284.9 $ 134.3 $ 150.6 $ 257.6 $ 102.0 $ 155.6 During the year ended December 29, 2019 , the Company recorded $27.3 million of intangible assets, including $24.9 million in customer relationship intangibles and $2.4 million in trademarks and other intangibles as a result of the acquisitions completed in 2019 as described in Note 3 and adjustments to purchase price allocations related to prior year acquisitions during the allowable measurement period. During the year ended December 30, 2018 , the Company recorded $71.4 million of intangible assets, including $64.5 million in customer relationship intangibles and $6.9 million in trademarks and other intangibles as a result of the acquisitions completed in 2018 as described in Note 3 and adjustments to purchase price allocations related to prior year acquisitions during the allowable measurement period. The customer relationship intangible assets will be amortized over a weighted-average period of approximately 20 years. The trademarks and other intangible assets recorded will be amortized over a weighted-average period of approximately five years . Amortization expense for intangible assets for the years ended December 29, 2019 , December 30, 2018 and December 31, 2017 was approximately $32.3 million , $28.7 million , and $23.9 million , respectively. Total future amortization estimated as of December 29, 2019 , is as follows (in millions): Fiscal year ending: 2020 $ 29.4 2021 24.5 2022 20.1 2023 16.0 2024 12.5 Thereafter 48.1 Total future amortization $ 150.6 |
Leases
Leases | 12 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense were as follows (in millions): Lease cost Classification For the year December 31, 2018 to December 29, 2019 Finance lease cost Amortization of right-of-use assets Selling, general and administrative expenses $ 6.7 Interest on lease liabilities Interest and other non-operating expenses, net 0.8 Operating lease cost Cost of goods sold 3.2 Operating lease cost Selling, general and administrative expenses 60.1 Short-term lease cost Selling, general and administrative expenses 1.5 Variable lease cost Selling, general and administrative expenses 0.7 Sublease income Selling, general and administrative expenses (0.6 ) Total lease cost $ 72.4 Supplemental cash flow information related to leases was as follows (in millions): Other information For the year December 31, 2018 to December 29, 2019 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows from finance leases $ 0.8 Operating cash flows from operating leases $ 62.2 Financing cash flows from finance leases $ 6.5 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases $ 15.0 Operating leases $ 76.3 The aggregate future lease payments for operating and finance leases as of December 29, 2019 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2020 $ 56.0 $ 7.6 2021 53.1 6.9 2022 43.0 5.3 2023 33.0 3.5 2024 24.0 1.3 Thereafter 86.8 0.2 Total lease payments 295.9 24.8 Less: interest 61.0 1.9 Present value of lease liabilities $ 234.9 $ 22.9 Average lease terms and discount rates were as follows: Lease Term and Discount Rate December 29, 2019 Weighted-average remaining lease term (years) Finance leases 3.7 Operating leases 7.1 Weighted-average discount rate Finance leases 4.6 % Operating leases 5.9 % As the Company did not restate prior year information for the adoption of ASC 842, future minimum lease payments for operating leases and capital leases as of December 30, 2018 as previously disclosed in the Company’s 2018 Annual Report on Form 10-K and under the previous lease accounting standard, were as follows (in millions): Operating Leases Finance Leases Fiscal year: 2019 $ 54.1 $ 5.8 2020 45.3 4.3 2021 37.7 3.6 2022 28.2 1.9 2023 20.2 0.4 Thereafter 71.4 — Total minimum lease payments $ 256.9 16.0 Less: amount representing interest 1.3 Present value of future minimum lease payments $ 14.7 |
Leases | Leases The components of lease expense were as follows (in millions): Lease cost Classification For the year December 31, 2018 to December 29, 2019 Finance lease cost Amortization of right-of-use assets Selling, general and administrative expenses $ 6.7 Interest on lease liabilities Interest and other non-operating expenses, net 0.8 Operating lease cost Cost of goods sold 3.2 Operating lease cost Selling, general and administrative expenses 60.1 Short-term lease cost Selling, general and administrative expenses 1.5 Variable lease cost Selling, general and administrative expenses 0.7 Sublease income Selling, general and administrative expenses (0.6 ) Total lease cost $ 72.4 Supplemental cash flow information related to leases was as follows (in millions): Other information For the year December 31, 2018 to December 29, 2019 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows from finance leases $ 0.8 Operating cash flows from operating leases $ 62.2 Financing cash flows from finance leases $ 6.5 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases $ 15.0 Operating leases $ 76.3 The aggregate future lease payments for operating and finance leases as of December 29, 2019 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2020 $ 56.0 $ 7.6 2021 53.1 6.9 2022 43.0 5.3 2023 33.0 3.5 2024 24.0 1.3 Thereafter 86.8 0.2 Total lease payments 295.9 24.8 Less: interest 61.0 1.9 Present value of lease liabilities $ 234.9 $ 22.9 Average lease terms and discount rates were as follows: Lease Term and Discount Rate December 29, 2019 Weighted-average remaining lease term (years) Finance leases 3.7 Operating leases 7.1 Weighted-average discount rate Finance leases 4.6 % Operating leases 5.9 % As the Company did not restate prior year information for the adoption of ASC 842, future minimum lease payments for operating leases and capital leases as of December 30, 2018 as previously disclosed in the Company’s 2018 Annual Report on Form 10-K and under the previous lease accounting standard, were as follows (in millions): Operating Leases Finance Leases Fiscal year: 2019 $ 54.1 $ 5.8 2020 45.3 4.3 2021 37.7 3.6 2022 28.2 1.9 2023 20.2 0.4 Thereafter 71.4 — Total minimum lease payments $ 256.9 16.0 Less: amount representing interest 1.3 Present value of future minimum lease payments $ 14.7 |
Employee Benefit and Stock Ince
Employee Benefit and Stock Incentive Plans | 12 Months Ended |
Dec. 29, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit and Stock Incentive Plans | Employee Benefit and Stock Incentive Plans The Company sponsors a defined contribution benefit plan for substantially all of its employees. Company contributions to the plan are based on a percentage of employee wages. The Company’s contributions to the plan were approximately $8.5 million , $7.5 million and $6.4 million for the years ended December 29, 2019 , December 30, 2018 and December 31, 2017 , respectively. The Company’s Omnibus Equity Incentive Plan (the “Omnibus Incentive Plan”), which became effective on April 28, 2016, provides for the grant of awards in the form of stock options, which may be either incentive stock options or non-qualified stock options; stock purchase rights; restricted stock; restricted stock units (“RSUs”); performance shares; performance stock units (“PSUs”); stock appreciation rights (“SARs”); dividend equivalents; deferred stock units (“DSUs”); and other stock-based awards. The Company also has outstanding stock-based awards under its stock incentive plan (“Stock Incentive Plan”) which commenced in May 2014 and terminated upon adoption of the Omnibus Incentive Plan. However, awards previously granted under the Stock Incentive Plan were unaffected by the termination of the Stock Incentive Plan. Any shares covered by an award, or any portion thereof, granted under the Omnibus Incentive Plan or Stock Incentive Plan that terminates, is forfeited, is repurchased, expires or lapses for any reason will again be available for the grant of awards. Additionally, any shares tendered or withheld to satisfy the grant or exercise price or tax withholding obligations pursuant to any award under the Omnibus Incentive Plan will again be available for issuance. The aggregate number of shares which may be issued under the Omnibus Incentive Plan is 2,000,000 shares of which 753,375 remain available as of December 29, 2019 . The stock options and RSUs granted to employees vest over a four-year period at 25% per year. The DSUs granted to non-employee directors vest immediately but settlement is deferred until termination of the director’s service on the board or until a change of control of the Company. Stock options and RSUs expire ten years after the date of grant. PSUs granted to employees vest upon the achievement of the performance conditions, over a three-year period, measured by the growth of the Company’s pre-tax income plus amortization relative to a select peer group, subject to adjustment based upon the application of a return on invested capital modifier. The fair value of each stock option award was estimated on the date of grant using the Black-Scholes options pricing model. Expected volatilities are based on the historical equity volatility of comparable publicly traded companies. The expected term of options granted is derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. The risk-free rates utilized for periods throughout the contractual life of the options are based on the U.S. Treasury security yields at the time of grant. The DSUs, RSUs and PSUs have grant date fair values equal to the fair market value of the underlying stock on the date of grant. Share-based compensation expense is recognized in the financial statements based upon fair value on the date of grant. The compensation cost for stock options and RSUs is recognized on a straight-line basis over the requisite vesting period. The Company recognizes compensation expense for PSUs when it is probable that the performance conditions will be achieved. The Company reassesses the probability of vesting at each reporting period and adjusts its compensation cost accordingly. The estimated grant-date fair value of stock options is calculated using the Black-Scholes option-pricing model, based on the following weighted-average assumptions: December 29, 2019 December 30, 2018 December 31, 2017 Risk-free interest rate 2.52% 2.77% 2.11% Expected dividends — — — Expected volatility 25% 25% 30% Expected term (in years) 6.25 6.25 6.25 The following table summarizes the information about stock options as of and for the years ended December 29, 2019 and December 30, 2018 : Number of Weighted Weighted Average Aggregate Outstanding as of December 31, 2017 3,153.9 $ 12.07 7.13 $ 203.8 Granted 289.2 76.77 Exercised (915.0 ) 7.34 Expired or forfeited (64.6 ) 33.18 Outstanding as of December 30, 2018 2,463.5 $ 20.87 6.30 $ 91.5 Granted 297.4 52.51 Exercised (659.9 ) 12.74 Expired or forfeited (102.2 ) 51.94 Outstanding as of December 29, 2019 1,998.8 $ 26.67 5.98 $ 127.5 Exercisable as of December 29, 2019 1,186.2 13.77 4.99 91.0 Unvested and expected to vest after December 29, 2019 812.6 $ 45.50 7.41 $ 36.5 The following table summarizes other stock-based compensation award activities for the years ended December 29, 2019 and December 30, 2018 : RSUs DSUs PSUs Outstanding as of December 30, 2018 85.9 24.7 — Granted 104.5 11.1 29.8 Exercised/Vested/Settled (26.8 ) (3.0 ) — Expired or forfeited (15.1 ) — (1.4 ) Outstanding as of December 29, 2019 148.5 32.8 28.4 The weighted average grant date fair value of awards granted during the year ended December 29, 2019 was as follows: Weighted Average Stock options $ 16.13 RSUs $ 52.65 DSUs $ 66.27 PSUs $ 51.69 A summary of stock-based compensation expenses recognized during the periods was as follows (in millions): For the year For the year Stock options $ 7.8 $ 6.0 RSUs 2.5 1.4 DSUs 0.9 0.5 PSUs 0.5 — Total stock-based compensation $ 11.7 $ 7.9 A summary of unrecognized stock-based compensation expense as of December 29, 2019 was as follows: Unrecognized Compensation Weighted Average Stock options $ 7.7 2.35 RSUs $ 5.9 2.72 DSUs $ 0.5 1.36 PSUs $ 1.0 2.00 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt was as follows (in millions): December 29, 2019 December 30, 2018 ABL facility $ 92.8 $ 123.1 Term loan facility 441.8 446.2 Total gross long-term debt 534.6 569.3 Less: unamortized debt issuance costs and discounts on debt (9.7 ) (11.1 ) Total debt $ 524.9 $ 558.2 Less: current portion (4.5 ) (4.5 ) Total long-term debt $ 520.4 $ 553.7 ABL Facility: SiteOne Landscape Supply Holding, LLC (“Landscape Holding”) and SiteOne Landscape Supply, LLC (“Landscape,” and together with Landscape Holding, the “Borrowers”), each an indirect wholly-owned subsidiary of the Company, are parties to the credit agreement dated December 23, 2013 (as amended by the First Amendment to the Credit Agreement, dated June 13, 2014, the Second Amendment to the Credit Agreement, dated January 26, 2015, the Third Amendment to the Credit Agreement, dated February 13, 2015, the Fourth Amendment to the Credit Agreement, dated October 20, 2015, the Omnibus Amendment to the Credit Agreement, dated May 24, 2017, and the Sixth Amendment to the Credit Agreement, dated February 1, 2019, the “ABL Credit Agreement”) providing for an asset-based credit facility (the “ABL Facility”) of up to $375.0 million , subject to borrowing base availability. The ABL Facility is secured by a first lien on the inventory and receivables of the Borrowers. The ABL Facility is guaranteed by SiteOne Landscape Supply Bidco, Inc. (“Bidco”), an indirect wholly-owned subsidiary of the Company, and each direct and indirect wholly-owned U.S. restricted subsidiary of Landscape. The availability under the ABL Facility was $263.4 million and $197.5 million as of December 29, 2019 and December 30, 2018 , respectively. Availability is determined using borrowing base calculations of eligible inventory and receivable balances less the current outstanding ABL Facility and letters of credit balances. On February 1, 2019, the Company entered into the Sixth Amendment to Credit Agreement, to among other things, (i) extend the termination date to February 1, 2024, (ii) increase the aggregate principal amount of the commitments under the ABL Credit Agreement to $375.0 million pursuant to an increase via use of the existing “incremental” provisions of the ABL Credit Agreement, and (iii) amend certain terms of the ABL Credit Agreement and Guarantee and Collateral Agreement. The interest rate on the ABL Facility is LIBOR plus an applicable margin ranging from 1.25% to 1.75% or an alternate base rate for U.S. denominated borrowings plus an applicable margin ranging from 0.25% to 0.75% . The interest rates on outstanding balances were 3.21% and 4.10% as of December 29, 2019 and December 30, 2018 , respectively. Additionally, the Borrowers paid a commitment fee of 0.25% and 0.25% on the unfunded amount as of December 29, 2019 and December 30, 2018 , respectively. The ABL Facility is subject to mandatory prepayments if the outstanding loans and letters of credit exceed either the aggregate revolving commitments or the current borrowing base, in an amount equal to such excess. Additionally, the ABL Facility is subject to various covenants requiring minimum financial ratios and additional borrowings may be limited by these financial ratios. Failure to meet any of these covenants could result in an event of default under these agreements. If an event of default occurs, the lenders could elect to declare all amounts outstanding under these agreements to be immediately due and payable, enforce their interest in collateral pledged under the agreement, or restrict the Borrowers’ ability to obtain additional borrowings under these agreements. The ABL Facility contains customary representations and warranties and customary affirmative and negative covenants. The negative covenants consist of the following: fundamental changes, dividends and distributions, acquisitions, collateral, payments and modifications of restricted indebtedness, negative pledge clauses, changes in line of business, currency, commodity and other hedging transactions, transactions with affiliates, investments, limitations on indebtedness and liens. The negative covenants are subject to the customary exceptions and also permit the payment of dividends and distributions, investments, permitted acquisitions and payments or redemptions of junior indebtedness upon satisfaction of a payment condition. As of December 29, 2019 , the Company is in compliance with all of the ABL Facility covenants. Term Loan Facility: The Borrowers entered into a syndicated senior term loan facility dated April 29, 2016, which was amended on November 23, 2016, May 24, 2017, December 12, 2017 and August 14, 2018 (the “Term Loan Facility”). The Term Loan Facility is guaranteed by Bidco and each direct and indirect wholly-owned U.S. restricted subsidiary of Landscape. The Term Loan Facility has a first lien on Property and equipment, Intangibles, and equity interests of Landscape, and a second lien on ABL Facility assets. In connection with the amendment on August 14, 2018, the final maturity date of the Term Loan Facility was extended to October 29, 2024. Term Loan Facility Amendments: On August 14, 2018, the Company amended the Term Loan Facility (the “Fourth Amendment”) to, among other things, (i) add an additional credit facility under the Term Loan Facility consisting of additional term loans (the “Tranche E Term Loans”) in an aggregate principal amount of $347.4 million and (ii) increase the aggregate principal amount of Tranche E Term Loans under the Term Loan Facility to $447.4 million . Proceeds of the Tranche E Term Loans were used to, among other things, (i) repay in full the Tranche D Term Loans and (ii) repay approximately $96.8 million of borrowings outstanding under the ABL Facility. The Tranche E Term Loans bear interest, at Landscape Holding’s option, at either (i) an adjusted LIBOR rate (as defined in the Term Loan Facility) plus an applicable margin equal to 2.75% or (ii) an alternative base rate plus an applicable margin equal to 1.75% . The other terms of the Tranche E Term Loans are generally the same as the terms applicable to the previously existing term loans under the Term Loan Facility, provided that certain terms of the Term Loan Facility were modified by the Fourth Amendment. The interest rate on the outstanding balance was 4.46% as of December 29, 2019 . The Term Loan Facility contains customary representations and warranties and customary affirmative and negative covenants, which fully restrict retained earnings of the Borrowers. The negative covenants are limited to the following: limitations on indebtedness, restricted payments, restrictive agreements, sales of assets and subsidiary stock, transactions with affiliates, liens, fundamental changes, amendments, lines of business and limitations on certain actions of the parent borrower. The negative covenants are subject to the customary exceptions. The Term Loan Facility is payable in consecutive quarterly installments equal to 0.25% of the aggregate initial principal amount of the Tranche E Term Loans until the maturity date. In addition, the Term Loan Facility is subject to annual mandatory prepayments in an amount equal to 50% of excess cash flow, as defined in the Term Loan Credit Agreement for the applicable fiscal year if 50% of excess cash flow exceeds $10.0 million and the secured leverage ratio is greater than 3.00 to 1.00 . As of December 29, 2019 , the Company is in compliance with all of the Term Loan Facility covenants. During the years ended December 29, 2019 , December 30, 2018 and December 31, 2017 , the Company incurred total interest expenses of $33.4 million , $32.1 million , and $25.2 million , respectively, of which $30.1 million , $27.1 million , and $21.8 million , respectively, related to interest on the ABL Facility and the Term Loan Facility. The debt issuance costs and discounts are amortized as interest expense over the life of the debt. As a result of the refinancing and amendments of the Term Loan Facility and ABL Facility, unamortized debt issuance costs and discounts in the amount of $0.4 million , $0.7 million , and $0.1 million , were written off to expense, and new discounts and debt issuance costs of $0.9 million , $2.4 million , and $2.2 million , were capitalized during the years ended December 29, 2019 , December 30, 2018 and December 31, 2017 , respectively. Amortization expense related to debt issuance costs and discounts was $2.0 million , $3.1 million , and $3.0 million for the years ended December 29, 2019 , December 30, 2018 and December 31, 2017 , respectively. The remaining $0.9 million , $1.2 million , and $0.3 million of interest is primarily related to finance leases for the years ended December 29, 2019 , December 30, 2018 and December 31, 2017 , respectively. Maturities of long-term debt outstanding, in principal amounts at December 29, 2019 are summarized below (in millions): Fiscal year: 2020 $ 5.6 2021 4.5 2022 4.5 2023 4.5 2024 515.5 Total $ 534.6 Interest Rate Swaps The Company is subject to interest rate risk with regard to existing and future issuances of debt. The Company utilizes interest rate swap contracts to reduce its exposure to fluctuations in variable interest rates for future interest payments on existing debt. The Company is party to various forward-starting interest rate swap contracts to convert the variable interest rate to a fixed interest rate on portions of the borrowings under the Term Loan Facility. The following table provides additional details related to the swap contracts: Derivatives designated as hedging instruments Inception Date Effective Date Maturity Date Notional Amount Fixed Interest Rate Type of Hedge Forward-starting interest rate swap 1 June 30, 2017 March 11, 2019 June 11, 2021 $ 58.0 2.1345 % Cash flow Forward-starting interest rate swap 2 June 30, 2017 March 11, 2019 June 11, 2021 116.0 2.1510 % Cash flow Forward-starting interest rate swap 3 December 17, 2018 July 14, 2020 January 14, 2024 34.0 2.9345 % Cash flow Forward-starting interest rate swap 4 December 24, 2018 January 14, 2019 January 14, 2023 50.0 2.7471 % Cash flow Forward-starting interest rate swap 5 December 26, 2018 January 14, 2019 January 14, 2023 90.0 2.7250 % Cash flow Forward-starting interest rate swap 6 May 30, 2019 July 15, 2019 January 14, 2023 70.0 2.1560 % Cash flow The Company recognizes the unrealized gains or unrealized losses as either assets or liabilities at fair value on its Consolidated Balance Sheets. The forward-starting interest rate swap contracts are subject to master netting arrangements. The Company has elected not to offset the fair value of assets with the fair value of liabilities related to these contracts. The following table summarizes the fair value of the derivative instruments and the respective lines in which they were recorded in the Consolidated Balance Sheets as of December 29, 2019 and December 30, 2018 (in millions): Derivative Assets Derivative Liabilities December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Prepaid expenses and other current assets $ — Prepaid expenses and other current assets $ 0.7 Accrued liabilities $ 2.1 Accrued liabilities $ — Other assets — Other assets 1.1 Other long-term liabilities 5.3 Other long-term liabilities 0.7 Total derivatives $ — $ 1.8 $ 7.4 $ 0.7 For determining the fair value of the interest rate swap contracts, the Company uses significant observable market data or assumptions (Level 2 inputs) that market participants would use in pricing similar assets or liabilities, including assumptions about counterparty risk. The fair value estimates reflect an income approach based on the terms of the interest rate swap contracts and inputs corroborated by observable market data including interest rate curves. The Company recognizes any differences between the variable interest rate payments and the fixed interest rate settlements with the swap counterparties as an adjustment to interest expense over the life of the swaps. The Company has designated these swaps as cash flow hedges and records the estimated fair value of the swaps to Accumulated other comprehensive income (loss) (“AOCI”) on its Consolidated Balance Sheets. As of December 29, 2019 , the fair value of the interest rate swaps in the amount of $(5.5) million , net of taxes, was recorded in Accumulated other comprehensive loss. To the extent the interest rate swaps are determined to be ineffective, the Company recognizes the changes in the estimated fair value of the swaps in earnings. For the year ended December 29, 2019 , there was no ineffectiveness recognized in earnings. The after-tax amount of unrealized loss on derivative instruments included in Accumulated other comprehensive loss related to the interest rate swap contracts maturing and expected to be reclassified to earnings during the next twelve months was $1.5 million as of December 29, 2019 . The ultimate amount recognized will vary based on fluctuations of interest rates through the maturity dates. The table below details pre-tax amounts in AOCI and gain (loss) reclassified into income for derivatives designated as cash flow hedges for the years ended December 29, 2019 and December 30, 2018 (in millions): December 29, 2019 December 30, 2018 Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ (8.5 ) Interest and other non-operating expenses, net $ (0.1 ) $ 0.5 Interest and other non-operating expenses, net $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In December 2017, the 2017 Tax Act was enacted. The 2017 Tax Act included several changes to existing U.S. tax laws that impacted the Company, most notably a reduction of the U.S. corporate income tax rate from 35% to 21%, effective as of January 1, 2018. The 2017 Tax Act also provided for a one-time transition tax on certain foreign earnings that were previously deferred, immediate expensing for certain assets placed into service after September 27, 2017, a global intangible low-taxed income (“GILTI”) provision which requires U.S. income inclusion of foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets, and a limitation on U.S. interest deductibility based on 30% of adjusted taxable income. The Company has elected to account for its GILTI as a period expense in the year incurred. In fiscal 2017, the Company recorded provisional amounts for the income tax effects of the 2017 Tax Act in accordance with SAB 118. In 2018, the Company completed its accounting for the income tax effects of the 2017 Tax Act. Components of Net income before taxes were as follows (in millions): For the year For the year For the year U.S. $ 87.5 $ 71.8 $ 69.2 Foreign 4.0 3.4 3.4 Total $ 91.5 $ 75.2 $ 72.6 Components of Income tax expense were as follows (in millions): For the year For the year For the year Current income tax expense U.S. federal $ 11.7 $ 4.8 $ 28.7 U.S. state and local 4.4 2.6 4.9 Foreign 1.1 1.0 0.9 Total current 17.2 8.4 34.5 Deferred income tax (benefit) expense U.S. federal (2.0 ) (4.8 ) (15.5 ) U.S. state and local (1.3 ) (2.3 ) (1.0 ) Foreign (0.1 ) — — Total deferred (3.4 ) (7.1 ) (16.5 ) Total $ 13.8 $ 1.3 $ 18.0 The Company’s effective tax rate was 15.1% , 1.7% , and 24.8% for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. The following table provides a reconciliation of income tax expense (benefit) at the statutory U.S. federal tax rate to actual income tax expense (benefit) for the periods presented (in millions): For the year For the year For the year U.S. federal statutory expense $ 19.2 $ 15.8 $ 25.4 State and local income taxes, net 2.2 * (0.2 ) * 2.0 * Excess tax benefits (7.7 ) (13.2 ) (6.1 ) Enactment of 2017 Tax Act - deferred tax re-measurement, net — (0.1 ) (4.5 ) Enactment of 2017 Tax Act - transition tax — (1.0 ) 1.3 Transaction costs — 0.2 0.4 Other, net 0.1 (0.2 ) (0.5 ) Income tax expense $ 13.8 $ 1.3 $ 18.0 * Includes excess tax benefits pursuant to ASU 2016-09 of $(1.9) million , $(3.1) million and $(0.7) million for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. Undistributed earnings of the Company’s foreign subsidiaries approximate $14.4 million as of December 29, 2019 . Those earnings are considered indefinitely reinvested; accordingly, no provision for U.S. federal and state income taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company may be subject to U.S. income taxes, state and local income taxes, and withholding taxes payable to the foreign country. From a U.S. income tax perspective, however, the Company expects to claim a 100% dividends received deduction to offset any U.S. federal income tax liability on the undistributed earnings. Determination of the amount of unrecognized state and local tax liability is not practicable due to the complexities associated with its hypothetical calculation. Withholding taxes of approximately $0.7 million may be payable upon remittance of all previously unremitted earnings as of December 29, 2019 . Deferred income taxes reflect the expected future tax consequences of temporary differences between the financial statement carrying amount of the Company’s assets and liabilities, tax credits, and loss carryforwards. The significant components of deferred income taxes are as follows (in millions): December 29, 2019 December 30, 2018 Deferred tax assets: Net operating losses $ 6.2 $ 6.6 Allowance for uncollectible accounts 4.9 3.7 Inventory 2.7 3.2 Reserve for sales bonuses 4.2 4.3 Accrued compensation 2.0 2.1 Stock compensation 4.6 3.1 Rent accrual — 1.9 Environmental reserve 0.6 0.6 Deferred transaction costs 2.0 1.8 Operating lease liabilities 60.6 — Interest rate swaps 1.9 — Other 1.5 1.9 Total gross deferred tax assets 91.2 29.2 Valuation allowance (4.6 ) (4.8 ) Total net deferred tax assets 86.6 24.4 Deferred tax liabilities: Fixed assets and land (12.0 ) (7.9 ) Intangible assets (10.9 ) (17.4 ) Goodwill (4.7 ) (3.4 ) Deferred financing costs (1.1 ) (1.3 ) Operating lease right-of-use assets (58.0 ) — Other (1.2 ) (1.5 ) Total deferred tax liabilities (87.9 ) (31.5 ) Net deferred tax liabilities $ (1.3 ) $ (7.1 ) Deferred taxes are recorded as follows in the Consolidated Balance Sheets (in millions): December 29, 2019 December 30, 2018 U.S. state and local net deferred tax assets $ 1.7 $ — Foreign net deferred tax assets 0.2 — U.S. state and local and Foreign net deferred tax assets 1.9 — U.S. federal net deferred tax liabilities (3.2 ) (7.0 ) U.S. state and local net deferred tax liabilities — (0.1 ) U.S. federal and U.S. state and local net deferred tax liabilities (3.2 ) (7.1 ) Net deferred tax liabilities $ (1.3 ) $ (7.1 ) The Company evaluates its deferred tax assets to determine the need for a valuation allowance, and to conclude whether it is more likely than not that those deferred income tax assets will be realized. Management assesses the available positive and negative evidence to establish whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. On the basis of this evaluation, as of December 29, 2019 and December 30, 2018 , a valuation allowance of $4.6 million and $4.8 million , respectively, has been recorded against deferred tax assets related primarily to state net operating loss carryforwards the Company believes are more likely than not to expire unused. Activity within the tax valuation allowance for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 4.8 $ 5.2 $ 4.1 Increase in valuation allowance — — 1.1 Decrease in valuation allowance (0.2 ) (0.4 ) — Ending balance $ 4.6 $ 4.8 $ 5.2 As of December 29, 2019 , the Company had available tax-effected federal NOL carryforwards of approximately $1.1 million that are indefinite-lived and tax-effected state NOL carryforwards of approximately $5.1 million that expire at various dates through 2037, if not utilized. The Company recognizes the tax effects of uncertain tax positions only if such positions are more likely than not to be sustained based solely upon its technical merits at the reporting date. The Company refers to the difference between the tax benefit recognized in its financial statements and the tax benefit claimed in the income tax return as an unrecognized tax benefit. There was no expense or liability recorded for unrecognized tax benefits for each period presented. The Company does not expect that the unrecognized tax benefit will materially change over the next 12 months. The Company’s policy for recording interest and penalties, if any, associated with uncertain tax positions is to recognize interest within Interest and other non-operating expenses, and to recognize penalties as a component of Selling, general and administrative expenses in the Company’s Consolidated Statements of Operations. For each period presented, the Company had no accrued interest or penalties related to uncertain tax positions. The Company is subject to U.S. federal income tax, income tax in multiple state jurisdictions, and Canadian federal and provincial income tax with respect to its foreign subsidiaries. With limited exceptions, years prior to the 2016 Fiscal Year are no longer open to U.S. federal, state and local examination by taxing authorities. Deere has indemnified the Company against any taxes, penalties or interest for tax periods prior to the CD&R Acquisition, accruing after the CD&R Acquisition date. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 29, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Following consummation of the secondary offering on July 26, 2017 (as described in Note 1 ), CD&R and Deere no longer have an ownership interest in the Company. Transactions with customers and entities that were under the common ownership of CD&R and Deere through July 26, 2017 are considered related-party transactions and are discussed below. The Company offers a financing plan to its customers through John Deere Financial, f.s.b. (“John Deere Financial”) a wholly-owned subsidiary of Deere. The Company pays John Deere Financial a fee related to the financing offered, which was approximately $0.3 million for the period from January 2, 2017 through July 26, 2017. TruGreen is a customer under common ownership of CD&R and therefore became a related party at the time of the CD&R Acquisition. As provided above, TruGreen is no longer a related party as a result of the consummation of the secondary offering on July 26, 2017. Net sales included in the Company’s Consolidated Statement of Operations with TruGreen were $4.3 million |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation : From time to time, the Company is subject to certain claims and lawsuits that have been filed in the ordinary course of business. The Company believes the reasonably possible range of losses for these unresolved legal actions in addition to amounts accrued would not have a material effect on the Company’s assets and liabilities as of December 29, 2019 and December 30, 2018 and revenues, expenses, changes in equity, and cash flows for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 . Environmental liability : As part of the sale of LESCO manufacturing assets in 2005, the Company retained the environmental liability associated with those assets. Remediation activities can vary substantially in duration and cost and it is difficult to develop precise estimates of future site remediation costs. The Company estimated in accrued liabilities the undiscounted cost of future remediation efforts to be approximately $3.6 million and $3.7 million as of December 29, 2019 and December 30, 2018 , respectively. As part of the CD&R Acquisition, Deere agreed to pay the first $2.5 million of the liability and cap the Company’s exposure is capped to $2.4 million . The Company has recorded an indemnification asset in Other assets against the liability as a result of these actions of $1.2 million and $1.3 million as of December 29, 2019 and December 30, 2018 , respectively. Letter of credit : As of December 29, 2019 and December 30, 2018 , outstanding letters of credit were $5.3 million and $4.5 million respectively. There were no amounts drawn on the letters of credit for either period presented. Purchase commitments : The Company has entered into contracts with various farmers that obligate the Company to purchase certain nursery products and grass seeds. These contracts run through fiscal year 2022. The total future obligation was approximately $97.0 million as of December 29, 2019 with expected payments of approximately $61.8 million , $27.9 million , and $7.3 million during the years ending December 2020 , 2021 , and 2022 respectively. The Company’s purchases were approximately $48.0 million , $46.3 million , and $33.7 million for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. The Company contracted with a supplier to purchase an aggregate minimum of 10,000 tons of fertilizer annually beginning in 2020 for 18 years or until the total purchase commitment of 180,000 tons of product is fulfilled. If the Company does not meet minimum volume commitments, the Company must pay a $288.50 per tonnage shortfall. In addition, the Company has entered into various service commitments, of which, the maximum total future obligation was approximately $6.1 million as of December 29, 2019 |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes basic earnings (loss) per share (“EPS”) by dividing Net income (loss) attributable to common shares by the weighted average number of common shares outstanding for the period. The Company includes vested DSUs in the basic weighted average number of common shares calculation. The Company’s computation of diluted EPS reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock, which include in-the-money outstanding stock options and RSUs. PSUs are excluded from the calculation of dilutive potential common shares until the performance conditions have been achieved. Using the treasury stock method, the effect of dilutive securities includes the additional shares of common stock that would have been outstanding based on the assumption that these potentially dilutive securities had been issued. The calculation of the effect of dilutive securities excludes any derived excess tax benefits or deficiencies from assumed future proceeds. RSUs and stock options with exercise prices that are higher than the average market prices of our common stock for the periods presented are excluded from the diluted EPS calculation because the effect is anti-dilutive. For the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , the assumed exercises of a portion of the Company’s employee stock options and RSUs were anti-dilutive and, therefore, the following potential shares of common stock were not included in the diluted loss per common share calculation: December 29, 2019 December 30, 2018 December 31, 2017 Weighted average potential common shares excluded because anti-dilutive Employee Stock Options and RSUs 258,829 278,728 13,798 Certain of the Company’s employee stock options, RSUs and DSUs were dilutive and resulted in additional potential common shares included in the Company’s calculation of diluted earnings per common share of 1,531,505 , 2,145,113 , and 2,438,835 for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 29, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 2, 2020, the Company acquired the assets and assumed the liabilities of Wittkopf Landscape Supply (“Wittkopf “). With two locations in the Spokane Valley, Washington market, Wittkopf is a distributor of hardscapes and landscape supplies to landscape professionals. On January 7, 2020, the Company acquired the assets and assumed the liabilities of Empire Supplies (“Empire “). With three locations in the greater Newark-Union, New Jersey market, Empire is a distributor of hardscapes and landscape supplies to landscape professionals. On January 14, 2020, the Company acquired the assets and assumed the liabilities of The Garden Dept. Corp. (“Garden Dept.”). With three locations in the greater Long Island, New York market, Garden Dept. is a distributor of nursery and landscape supplies to landscape professionals. The acquisitions were not material and not expected to have a significant impact on the consolidated financial statements. |
Schedule I - SiteOne Landscape
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements | 12 Months Ended |
Dec. 29, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements | SiteOne Landscape Supply, Inc. Parent Company Only Condensed Balance Sheets (In millions, except share data) December 29, 2019 December 30, 2018 Assets Investment in wholly owned subsidiary $ 392.4 $ 300.8 Deferred tax asset (Note 3) 0.8 1.0 Total assets $ 393.2 $ 301.8 Liabilities and Stockholders' Equity Total liabilities — — Stockholders' Equity: Common stock, par value $0.01; 1,000,000,000 shares authorized; 41,591,727 and 40,910,992 shares issued, and 41,570,816 and 40,890,081 shares outstanding at December 29, 2019 and December 30, 2018, respectively 0.4 0.4 Additional paid in capital 261.5 242.1 Retained Earnings 137.8 60.1 Accumulated other comprehensive loss $ (6.5 ) $ (0.8 ) Total stockholders' equity 393.2 301.8 Total liabilities and stockholders' equity $ 393.2 $ 301.8 See Notes to Condensed Financial Statements. SiteOne Landscape Supply, Inc. Parent Company Only Condensed Statements of Operations and Comprehensive Income (In millions) For the year For the year For the year December 31, 2018 January 1, 2018 January 2, 2017 to December 29, 2019 to December 30, 2018 to December 31, 2017 Equity in net income of subsidiary $ 77.7 $ 73.9 $ 54.6 Income before taxes 77.7 73.9 54.6 Net income $ 77.7 $ 73.9 $ 54.6 Other comprehensive income (loss), net of tax (5.7 ) (0.5 ) 0.9 Comprehensive income $ 72.0 $ 73.4 $ 55.5 See Notes to Condensed Financial Statements. SiteOne Landscape Supply, Inc. Parent Company Only Condensed Statements of Cash Flows (In millions) For the year For the year For the year December 31, 2018 January 1, 2018 January 2, 2017 to December 29, 2019 to December 30, 2018 to December 31, 2017 Cash Flows from Operating Activities: Net income $ 77.7 $ 73.9 $ 54.6 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of subsidiary (77.7 ) (73.9 ) (54.6 ) Distribution from subsidiary — — — Net cash provided by operating activities $ — $ — $ — Cash Flows from Investing Activities: Distribution received from subsidiary — — — Net cash provided by investing activities $ — $ — $ — Cash Flows from Financing Activities: Special cash dividend — — — Other dividends paid — — — Other financing activities — — — Net cash used in financing activities $ — $ — $ — Net change in cash and cash equivalents — — — Cash and cash equivalents: Beginning — — — Ending $ — $ — $ — See Notes to Condensed Financial Statements. Notes to Condensed Parent Company Only Financial Statements Note 1. Description of SiteOne Landscape Supply, Inc. SiteOne Landscape Supply, Inc. (“Holdings” or the “Parent”) indirectly owns 100% of the membership interest in SiteOne Landscape Supply Holding, LLC (“Landscape Holding” or “subsidiary”), which it acquired from Deere & Company on December 23, 2013 (the “Closing Date”) in exchange for its common stock initially representing 40% of the outstanding capital stock (on an as-converted basis). In addition, Holdings issued cumulative convertible participating redeemable preferred stock (“Redeemable Convertible Preferred Stock”) to Clayton, Dubilier & Rice, LLC (“CD&R”) initially representing 60% of its remaining outstanding capital stock (on an as-converted basis) (both events collectively referred to herein as the “CD&R Acquisition”). On May 2, 2016, Holdings paid a one-time special cash dividend to all existing stockholders as of April 29, 2016. CD&R received $112.4 million in accordance with its right to participate in all distributions to common stock on an as-converted basis, in accordance with its right as a preferred stockholder. On the day prior to the closing of the initial public offering, all of the then-outstanding Redeemable Convertible Preferred Stock converted into shares of common stock, resulting in the issuance by Holdings of an additional 25,303,164 shares of common stock. On December 5, 2016, May 1, 2017 and July 26, 2017, Holdings completed secondary offerings of its common stock in which Deere and CD&R were the sole sellers. Following consummation of the secondary offering on July 26, 2017, CD&R and Deere no longer have an ownership interest in Holdings. Holdings has no significant operations or assets other than its indirect ownership of the equity of Landscape Holding. Accordingly, the Holdings is dependent upon distributions from Landscape Holding to fund its obligations. However, under the terms of Landscape Holding’s credit agreements governing Landscape Holding’s ABL Facility and Term Loan Facility, Landscape Holding’s ability to pay dividends or lend to Holdings is restricted. Landscape Holding has no obligation to pay dividends to Holdings except to pay specified amounts to Holdings in order to fund the payment of Holdings’ tax obligations. Note 2. Basis of Presentation The accompanying Condensed Parent Only Financial Statements include the amounts of Holdings and its investment in subsidiary since the Closing Date under the equity method, and do not present the financial statements of Holdings and its subsidiary on a consolidated basis. Under the equity method, investment in subsidiary is stated at cost plus contributions and equity in undistributed income (loss) of subsidiary less distributions received since the date of acquisition. The condensed Parent Company Only Financial Statements should be read in conjunction with SiteOne Landscape Supply, Inc. Consolidated Financial Statements and their accompanying Notes to Consolidated Financial Statements. Note 3. Income Taxes With respect to the CD&R Acquisition, $9.8 million of transaction expenses were recorded within the period ended December 29, 2013. Of the $9.8 million of transaction expenses, $3.7 million were not deductible for tax purposes, and the remaining $6.1 million ( $2.2 million tax-effected) were capitalized for tax purposes as a deferred tax asset. During the years end December 29, 2019 and December 30, 2018 , respectively, $0.4 million ( $0.2 million tax-effected) and $0.4 million ( $0.0 million tax-effected) has been amortized, which gives rise to a net operating loss and current tax benefit that offsets the deferred tax expense by the same amount. In December 2017, the 2017 Tax Act was enacted. The 2017 Tax Act included a number of changes to existing U.S. tax laws that impacted the Company, most notably a reduction of the U.S. corporate income tax rate from 35% to 21% , effective as of January 1, 2018. The 2017 Tax Act also provided for a one-time transition tax on certain foreign earnings that were previously deferred, immediate expensing for certain assets placed into service after September 27, 2017, a GILTI provision which requires U.S. income inclusion of foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets, and a limitation on U.S. interest deductibility based on 30% of adjusted taxable income. The Company has elected to account for its GILTI as a period expense in the year incurred. In fiscal 2017, the Company recorded provisional amounts for the income tax effects of the 2017 Tax Act in accordance with SAB 118. In 2018, the Company completed its accounting for the tax effects of the 2017 Tax Act. As of December 29, 2019 , the deferred tax asset related to these transaction expenses has a balance of $0.8 million . |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of financial statement presentation | Basis of Financial Statement Presentation Holdings indirectly owns 100% of the membership interest in SiteOne Landscape Supply Holding, LLC (referred to herein as “Landscape Holding”). Landscape Holding is parent and sole owner of SiteOne Landscape Supply, LLC (referred to herein as “Landscape”). Prior to the transaction described below, Deere & Company (“Deere”) was the sole owner of SiteOne Landscape Supply Holding, LLC. On December 23, 2013 (the “Closing Date”), the Company acquired 100% of the ownership interest in Landscape Holding from Deere in exchange for common shares of the Company initially representing 40% of the outstanding capital stock (on an as-converted basis) plus cash consideration of approximately $314 million , net of pre-closing and post-closing adjustments. In order to facilitate the transaction, the Company issued Redeemable Convertible Preferred Stock to Clayton, Dubilier & Rice, LLC (“CD&R”) for total consideration of $174 million initially representing 60% of the outstanding capital stock (on an as-converted basis). As part of the same transaction, Landscape Holding also acquired from Deere the affiliated company LESCO, Inc. (“LESCO”). The Company continues to be the sole owner of Landscape Holding. The aforementioned transactions described in this paragraph are referred to herein as the “CD&R Acquisition”. Following consummation of the secondary offering on July 26, 2017, CD&R and Deere no longer have an ownership interest in the Company. The Company’s chief operating decision maker (“CODM”) manages the business as a single reportable segment. Within the organizational framework, the same operational resources support multiple geographical regions and performance is evaluated primarily by the CODM at a consolidated level. The CODM also evaluates regional performance based on financial and operational measures and receives discrete financial information on a regional basis. Since all of the Company’s regions have similar operations and share similar economic characteristics, the Company aggregates regions into a single operating and reportable segment. These similarities include 1) long-term financial performance, 2) the nature of products and services, 3) the types of customers the Company sells to, and 4) the distribution methods used. Further, all of the Company’s product categories have similar supply chain processes, classes of customers, and economic characteristics. The accompanying audited consolidated financial statements of the Company included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Consolidated Statements of Operations, Comprehensive income (loss), Equity, and Cash Flows for the Company are presented for the fiscal years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 . The consolidated financial statements for the Company include the assets and liabilities used in operating the Company’s business, including entities in which the Company owns or controls more than 50% of the voting shares. All of the Company’s subsidiaries are wholly owned. All intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates in the preparation of financial statements | Use of estimates in the preparation of financial statements : The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fiscal year | Fiscal year : The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to December 31. The years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 each included 52 weeks. |
Cash and cash equivalents | Cash and cash equivalents : Cash and cash equivalents include primarily cash on deposit with banks which, at times, may exceed federally insured limits. The Company has not experienced any losses in these accounts. Cash and cash equivalents also include unsettled credit card transactions. |
Accounts receivables | Accounts receivable : The Company carries accounts receivable at the original invoice amount, less any charge-offs and the allowance for credit losses and doubtful accounts. Allowances for credit losses and doubtful accounts are maintained in amounts considered to be appropriate in relation to the receivables outstanding based on collection experience, economic conditions, and credit risk quality. Receivables are written-off to the allowance when an account is considered uncollectible. |
Inventory | Inventory |
Property and equipment, net | Property and equipment, net : Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed on property and equipment using the straight-line method over the estimated useful lives of the assets, as noted below. Leasehold improvements are depreciated over the lesser of their estimated useful lives or the remaining lease terms. The amortization of the right-of-use assets under finance leases, which prior to fiscal year 2019 were known as capital leases, is included in amortization expense. Expenditures for replacement or major renewals of significant items are capitalized. Expenditures for maintenance, repairs, and minor renewals are generally charged to expense as incurred. Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Impairment of long-lived assets : Long-lived assets, primarily property and equipment, finite-lived intangible assets, and long-term contracts included in other assets, are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. The recoverability of an asset group is measured by a comparison of the carrying amount of the asset group to its future undiscounted cash flows. |
Acquisitions | Acquisitions : When the Company acquires a controlling financial interest in an entity or group of assets that are determined to meet the definition of a business, the acquisition method described in ASC Topic 805, Business Combinations, is applied. The Company allocates the purchase consideration paid to acquire the business to the assets and liabilities acquired based on estimated fair values at the acquisition date, with the excess of purchase price over the estimated fair value of the net assets acquired recorded as goodwill. If during the measurement period (a period not to exceed 12 months from the acquisition date) the Company receives additional information that existed as of the acquisition date but at the time of the original allocation described above was unknown, the Company makes the appropriate adjustments to the purchase price allocation in the reporting period in which the adjustments are identified. |
Goodwill impairment | Goodwill impairment : Goodwill represents the acquired fair value of a business in excess of the fair values of tangible and identified intangible assets acquired and liabilities assumed. The Company tests goodwill on an annual basis as of July fiscal month-end and additionally if an event occurs or circumstances change that would indicate the carrying amount may be impaired. Examples of such indicators include a significant change in the business climate, unexpected competition, loss of key personnel or a decline in the Company’s market capitalization below the Company’s net book value. The Company performs impairment assessments at the reporting unit level, which is defined as an operating segment or one level below an operating segment, also known as a component. With the issuance of Accounting Standards Update 2017-04 Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) in January 2017, the impairment test is now a single-step process. The process requires the Company to estimate and compare the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value exceeds the carrying amount, the goodwill is not considered impaired. To the extent a reporting unit’s carrying amount exceeds its fair value, the reporting unit’s goodwill is deemed impaired, and an impairment charge is recognized based on the excess of a reporting unit’s carrying amount over its fair value . |
Intangible assets, net | Intangible assets, net |
Fair value measurement | Fair value measurement : Fair value is defined as an exit price, representing an amount that would be received to sell an asset or the amount paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The inputs used to measure fair value are prioritized into the following three-tiered value hierarchy: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active or inputs, other than quoted prices in active markets, which are observable either directly or indirectly. • Level 3: Unobservable inputs for which there is little or no market data. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The classification of fair value measurement within the hierarchy is based upon the lowest level of input that is significant to the measurement. The Company’s financial instruments consist of cash and cash equivalents, accounts receivables, and long-term debt. The variable interest rate on the long-term debt is reflective of current market borrowing rates. As such, the Company has determined that the carrying value of these financial instruments approximates fair value. |
Sales incentives | Sales incentives : The Company offers certain customers rebates which are accrued based on sales volumes. In addition, the Company offers a points-based reward program which allows enrolled customers to earn loyalty rewards on purchases to be used on future purchases, to pay for annual customer trips hosted by the Company, or to obtain gift cards to other third-party retailers. The Company often receives cash payments from customers in advance of the Company’s performance of the customer loyalty reward program resulting in contract liabilities. These contract liabilities are classified as current in the Company’s Consolidated Balance Sheets. Contract liabilities are reported on the Company’s Consolidated Balance Sheets on a contract-by-contract basis. |
Cost of goods sold | Revenue recognition : The Company recognizes revenue when control over a product or service is transferred to a customer. This transfer occurs primarily when goods are picked up by a customer at the branch or when goods are delivered to a customer location. Revenue is measured at the transaction price, which is based on the amount of consideration the Company expects to receive in exchange for transferring the promised goods or services to the customer. The transaction price will include estimates of variable consideration, such as returns and provisions for doubtful accounts and sales incentives, to the extent it is probable that a significant reversal of revenue recognized will not occur. In all cases, when a sale is recorded by the Company, no significant uncertainty exists surrounding the purchaser’s obligation to pay. Net sales include billings for freight and handling charges and commissions on the sale of control products that we sell as an agent. Net sales are presented net of any discounts, returns, customer rebates, and sales or other revenue-based taxes. Provisions for returns are estimated and accrued at the time a sale is recognized. The Company also has entered into agency agreements with certain of its suppliers whereby the Company operates as a sales agent of those suppliers. The suppliers retain title to their merchandise until it is sold by the Company and determine the prices at which the Company can sell their merchandise. The Company recognizes these agency sales on a net basis and records only the product margin as commission revenue within Net sales. Sales incentives : The Company offers certain customers rebates which are accrued based on sales volumes. In addition, the Company offers a points-based reward program which allows enrolled customers to earn loyalty rewards on purchases to be used on future purchases, to pay for annual customer trips hosted by the Company, or to obtain gift cards to other third-party retailers. The Company often receives cash payments from customers in advance of the Company’s performance of the customer loyalty reward program resulting in contract liabilities. These contract liabilities are classified as current in the Company’s Consolidated Balance Sheets. Contract liabilities are reported on the Company’s Consolidated Balance Sheets on a contract-by-contract basis. Sales taxes : The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with revenue producing transactions between the Company and its customers. These taxes may include sales, use, value-added, and some excise taxes. The Company reports the collection of these taxes on a net basis (excluded from sales). Cost of goods sold : Cost of goods sold includes all inventory costs, such as purchase price from suppliers, net of any volume-based incentives, as well as inbound freight and handling, and other costs associated with the inventory, and is exclusive of the costs to deliver the products to customers. Shipping and handling costs : Shipping and handling costs associated with inbound freight are included in Cost of goods sold. |
Warranty reserves | Warranty reserves |
Leases | Leases : The Company determines if an arrangement is a lease at inception of a contract. The Company leases equipment and real estate including office space, branch locations, and distribution centers under operating leases. Finance lease obligations consist primarily of the Company’s vehicle fleet. Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases include options to purchase the leased property. The lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component. The Company also elected the package of practical expedients, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or lease liabilities. These payments are expensed as incurred and recorded as variable lease expense. |
Advertising costs | Advertising costs |
Stock-based compensation | Stock-based compensation : The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized on a straight-line basis over the requisite service period based on the portion of the award that is expected to vest. Stock-based compensation expense for restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The Company utilizes the Black-Scholes option pricing model to estimate the grant-date fair value of option awards. The exercise price of option awards is set to equal the value of the common stock at the date of the grant. The following weighted-average assumptions are also used to calculate the estimated fair value of option awards: • Expected volatility: The expected volatility of the Company’s shares is estimated using the historical stock price volatility over the most recent period commensurate with the estimated expected term of the awards. • Expected term: For employee stock option awards, the Company determines the weighted average expected term equal to the weighted period between the vesting period and the contract life of all outstanding options. • Dividend yield: The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero . • Risk-free interest rate: The Company bases the risk-free interest rate on the implied yield available on a U.S. Treasury note with a term equal to the estimated expected term of the awards. |
Other income | Other income : Other income consists primarily of financing charges, net gain/loss on sale of assets, and the fair value adjustments of acquisition related contingent obligations. |
Income taxes | Income taxes : The Company files a consolidated federal income tax return and files both combined or unitary state income tax returns as well as separate state income tax returns in certain jurisdictions. Deferred taxes are provided on an asset and liability method in which deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Realization of deferred tax assets is dependent upon sufficient future taxable income. |
Foreign currency translation | Foreign currency translation : The functional currency for the Company’s Canadian operations is the Canadian dollar, the local currency. The assets and liabilities of these operations are translated into U.S. dollars at the end of the period exchange rates. The revenues and expenses are translated at average exchange rates for the period. The gains or losses from these translations are recorded in other comprehensive income (loss). Gains or losses recognized on transactions denominated in a currency other than the functional currency are included in Net income (loss). |
Recently Issued and Adopted Accounting Pronouncements and Accounting Pronouncements Issued But Not Yet Adopted | Recently Issued and Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory” (“ASU 2015-11”), which requires entities to measure inventory at the lower of cost or net realizable value rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The Company adopted ASU 2015-11 when it became effective in the first quarter of the 2017 Fiscal Year. The adoption of ASU 2015-11 did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “ Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. The Company adopted ASU 2016-09 when it became effective in the first quarter of fiscal year 2017 on a prospective basis and as such, the Company’s prior year presentation has not changed. The primary impact of the adoption was the recognition of excess tax benefits as a component of Income tax expense on the Company’s Consolidated Statements of Operations. Historically, these amounts were recorded as Additional paid-in capital in Stockholders’ equity on the Company’s Consolidated Balance Sheets. The Company also elected to adopt the cash flow presentation of the excess tax benefits prospectively commencing in the first quarter of 2017. The Company presents excess tax benefits or tax deficiencies within operating cash flows versus financing activities on the Consolidated Statements of Cash Flows. Another impact of the adoption is that the calculation of the effect of dilutive securities excludes any derived excess tax benefits or deficiencies from assumed future proceeds, resulting in an increase in diluted weighted average shares outstanding. Additionally, the Company elected to account for forfeitures of share-based payments as they occur and there was no material financial impact as a result. None of the other provisions in ASU 2016-09 had a material impact on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, “ Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge (also known as Step 2 under the current guidance). Rather, the measurement of a goodwill impairment charge is based on the excess of a reporting unit’s carrying value over its fair value (Step 1 under the current guidance). ASU 2017-04 will be effective for annual and interim goodwill impairment tests performed in periods beginning after December 15, 2019 and should be applied prospectively. Early adoption is permitted for annual and interim goodwill impairment tests beginning after January 1, 2017. The Company adopted ASU 2017-04 in July 2017 with its annual goodwill impairment test. The adoption of ASU 2017-04 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ” (“ASU 2017-12”), which seeks to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. Additionally, ASU 2017-12 made certain targeted improvements to simplify the application of the hedge accounting guidance in current U.S. GAAP based on the feedback received from preparers, auditors, users, and other stakeholders. ASU 2017-12 added new disclosure requirements, amended existing ones, and removed the requirement for entities to disclose amounts of hedge ineffectiveness. In addition, an entity must provide tabular disclosures regarding: both (i) the total amounts reported in the statement of financial performance for each income and expense line item that is affected by fair value or cash flow hedging and (ii) the effects of hedging on those line items; and the carrying amounts and cumulative basis adjustments of items designated and qualifying as hedged items in fair value hedges. Early adoption is permitted in any interim period after issuance of ASU 2017-12. The Company adopted ASU 2017-12 in the third quarter of the 2017 Fiscal Year. The adoption of ASU 2017-12 did not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which amends existing revenue recognition standards and establishes a new Accounting Standards Codification (“ASC”) Topic 606. The core principle of this amendment is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for these goods or services. The Company adopted ASU 2014-09 and related amendments in the first quarter of fiscal year 2018 using the modified retrospective transition method. The Company concluded that it had substantially similar performance obligations under the amended guidance as compared with deliverables and units of account previously recognized. Additionally, the Company made policy elections within the amended standard that are consistent with its current accounting. The adoption of ASU 2014-09 resulted in additional revenue recognition disclosures (refer to Note 2 ), and had an immaterial impact on the timing of revenue recognition related to its customer loyalty rewards program. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings in the first quarter of 2018. The adoption of ASC 606 did not have a significant impact on the Company’s consolidated financial statements. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), to provide clarification on cash flow classification related to eight specific issues including debt prepayment or debt extinguishment costs and contingent consideration payments made after a business combination. The guidance in ASU 2016-15 required adoption using a retrospective transition method to each period presented. The Company adopted ASU 2016-15 when it became effective in the first quarter of fiscal year 2018. The adoption of ASU 2016-15 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (“ASU 2016-16”), which amends existing guidance to require entities to recognize income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-16 required adoption using a modified retrospective method. The Company adopted ASU 2016-16 when it became effective in the first quarter of fiscal year 2018. The adoption of ASU 2016-16 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”), which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Transfers between cash and cash equivalents and restricted cash or restricted cash equivalents are not reported as cash flow activities in the statement of cash flows. ASU 2016-18 required adoption using a retrospective transition method. The Company adopted ASU 2016-18 when it became effective in the first quarter of fiscal year 2018. The adoption of ASU 2016-18 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business ” (“ASU 2017-01”), to clarify the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses. ASU 2017-01 provides a screen to determine when an integrated set of assets and activities (collectively a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amendments in ASU 2017-01 (i) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (ii) remove the evaluation of whether a market participant could replace missing elements. ASU 2017-01 required adoption on a prospective basis. The Company adopted ASU 2017-01 when it became effective in the first quarter of fiscal year 2018. The adoption of ASU 2017-01 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU 2017-09, “ Compensation-Stock Compensation (Topic 718) - Scope of Modification” (“ASU 2017-09”), which provides clarity and reduces both diversity in practice and cost and complexity when applying the guidance in Topic 718 when there are changes to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 required adoption on a prospective basis. The Company adopted ASU 2017-09 when it became effective in the first quarter of fiscal year 2018. The adoption of ASU 2017-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118” (“ASU 2018-05”), which was effective immediately. ASU 2018-05 adds various SEC paragraphs pursuant to the issuance in December 2017 of Staff Accounting Bulletin No. 118 (“SAB 118”). The SEC issued SAB 118 to address concerns about reporting entities’ ability to timely comply with the accounting requirements to recognize all of the effects of the 2017 Tax Act in the period of enactment. SAB 118 allowed disclosure that some or all of the income tax effects from the 2017 Tax Act were incomplete by the due date of the financial statements and requested entities to provide a reasonable estimate if possible. In fiscal 2017, the Company recorded provisional amounts for the income tax effects of the 2017 Tax Act. In 2018, the Company completed its accounting for the income tax effects of the 2017 Tax Act. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842), ” amended by subsequent ASUs (collectively “ASC 842”), which supersedes the guidance for recognition, measurement, presentation and disclosures of lease arrangements. The amended standard requires recognition on the balance sheet for all leases with terms longer than 12 months as a lease liability and as a right-of-use (“ROU”) asset. The lease liability is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and the ROU asset is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company adopted ASC 842 when it became effective in the first quarter of fiscal year 2019 using a modified transition approach under which prior comparative periods were not adjusted. The Company elected the package of practical expedients, which permits not reassessing its prior conclusions about lease identification, lease classification, and initial direct costs. In addition, the Company made the election for certain classes of underlying assets to not separate non-lease components from lease components. However, the Company did not elect the lease term hindsight practical expedient. For leases less than 12 months, the Company made an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities as permitted by the guidance. The adoption of the new standard had a material impact on the Company’s Consolidated Balance Sheets, but an immaterial impact on its Consolidated Statements of Operations and Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases, while the accounting for finance leases remained substantially unchanged. The impact to the Consolidated Balance Sheets as of December 31, 2018 for the adoption of ASC 842 was as follows (in millions): December 30, 2018 Adjustments Due to ASC 842 December 31, 2018 Assets Prepaid expenses and other current assets $ 41.1 $ (4.7 ) $ 36.4 Operating lease right-of-use assets, net — 203.8 203.8 Other assets 10.7 (0.6 ) 10.1 Liabilities Accrued liabilities 46.0 (0.9 ) 45.1 Current portion of operating leases — 40.9 40.9 Other long-term liabilities 14.0 (7.1 ) 6.9 Operating leases, less current portion — 165.6 165.6 In February 2018, the FASB issued ASU 2018-02, “ Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ” (“ASU 2018-02”). The FASB is providing ongoing guidance on certain accounting and tax effects of the legislation in the Tax Cuts and Jobs Act (the “2017 Tax Act”), which was enacted in December 2017. ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Act. The amendments in ASU 2018-02 also require certain disclosures about stranded tax effects. The Company adopted ASU 2018-02 when it became effective in the first quarter of fiscal year 2019. The Company has elected to not reclassify stranded tax effects resulting from the 2017 Tax Act. The adoption of ASU 2018-02 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU 2018-07, “ Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ” (“ASU 2018-07”) which simplifies the accounting for nonemployee share-based payment transactions by expanding the scope of ASC Topic 718, Compensation - Stock Compensation , to include share-based payment transactions for acquiring goods and services from nonemployees. Under ASU 2018-07, most of the guidance on stock compensation payments to nonemployees is aligned with the requirements for share-based payments granted to employees. The Company adopted ASU 2018-07 when it became effective in the first quarter of fiscal year 2019. The adoption of ASU 2018-07 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “ Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) ” (“ASU 2018-15”) which amends ASC 350-40 to address a customer’s accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. ASU 2018-15 amends ASC 350 and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA. The ASU does not expand on existing disclosure requirements except to require a description of the nature of hosting arrangements that are service contracts. Entities are permitted to apply either a retrospective or prospective transition approach to adopt the guidance. The Company early adopted the amended guidance on a prospective application basis during the first quarter of fiscal year 2019. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In October 2018, the FASB issued ASU 2018-16, “ Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes ” (“ASU 2018-16”). ASU 2018-16 allows for the use of the OIS rate based on the SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, Derivatives and Hedging . The Company adopted ASU 2018-16 when it became effective in the first quarter of fiscal year 2019. The adoption of ASU 2018-16 did not have a material impact on the Company’s consolidated financial statements and related disclosures. In July 2019, the FASB issued ASU 2019-07, “ Codification Updates to SEC Sections - Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update) ” (“ASU 2019-07”). ASU 2019-07 clarifies or improves the disclosure and presentation requirements of a variety of codification topics by aligning them with the SEC’s regulations, thereby eliminating redundancies and making the codification easier to apply. ASU 2019-07 is effective upon issuance and did not have a material impact on the Company’s consolidated financial statements and related disclosures. Accounting Pronouncements Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments,” amended by subsequent ASUs (collectively, “ASU 2016-13”), which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. The amendments should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. The Company will adopt the amended guidance commencing in the first quarter of fiscal year 2020. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement ” (“ASU 2018-13”) which changes the fair value measurement disclosure requirements of ASC 820. The ASU adds new disclosure requirements and eliminates and modifies existing disclosure requirements. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments in ASU 2018-13 should be applied retrospectively to all periods presented. ASU 2018-13 will be effective for the Company commencing in the first quarter of fiscal year 2020. The Company will adopt the amended guidance commencing in the first quarter of fiscal year 2020. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU 2019-12, “ Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). The amendments in ASU 2019-12 simplify the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, Income Taxes. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC Topic 740 by clarifying and amending existing guidance. ASU 2019-12 will be effective for the Company commencing in the first quarter of fiscal year 2021 with early adoption permitted. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively or retrospectively. The Company is currently evaluating the amended guidance and the impact on its consolidated financial statements and related disclosures. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Activity in the Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 5.9 $ 4.7 $ 4.3 Provision (reduction) for allowance 5.9 2.9 2.0 Write-offs, net of recoveries (3.5 ) (1.7 ) (1.6 ) Ending balance $ 8.3 $ 5.9 $ 4.7 |
Summary of Property, Plant and Equipment, Useful Life | Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Property and equipment consisted of the following (in millions): December 29, 2019 December 30, 2018 Land $ 12.2 $ 12.2 Buildings and leasehold improvements: Buildings 7.8 7.9 Leasehold improvements 25.5 20.5 Branch equipment 47.9 36.8 Office furniture and fixtures and vehicles: Office furniture and fixtures 21.4 19.1 Vehicles 30.2 58.1 Finance lease right-of-use assets 46.3 — Tooling 0.1 0.1 Construction in process 2.9 2.0 Total Property and equipment, gross 194.3 156.7 Less: accumulated depreciation and amortization 89.4 68.3 Total Property and equipment, net $ 104.9 $ 88.4 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact to the Consolidated Balance Sheets as of December 31, 2018 for the adoption of ASC 842 was as follows (in millions): December 30, 2018 Adjustments Due to ASC 842 December 31, 2018 Assets Prepaid expenses and other current assets $ 41.1 $ (4.7 ) $ 36.4 Operating lease right-of-use assets, net — 203.8 203.8 Other assets 10.7 (0.6 ) 10.1 Liabilities Accrued liabilities 46.0 (0.9 ) 45.1 Current portion of operating leases — 40.9 40.9 Other long-term liabilities 14.0 (7.1 ) 6.9 Operating leases, less current portion — 165.6 165.6 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Net Sales Disaggregated By Product Category | The following table presents Net sales disaggregated by product category: For the year December 31, 2018 to December 29, 2019 For the year January 1, 2018 to December 30, 2018 For the year January 2, 2017 to December 31, 2017 Landscaping products (a) $ 1,670.7 $ 1,468.4 $ 1,265.4 Agronomic and other products (b) 686.8 643.9 596.3 $ 2,357.5 $ 2,112.3 $ 1,861.7 ______________ (a) Landscaping products include irrigation, nursery, hardscapes, outdoor lighting, and landscape accessories. (b) Agronomic and other products include fertilizer, control products, ice melt, equipment, and other products. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Asset Class Estimated Useful Life Buildings and improvements 20 years Branch equipment 2 to 12 years Furniture and fixtures 2 to 12 years Auto and truck 2 to 6 years Tooling 7 years Leasehold improvements Shorter of the estimated useful life or the term of the lease, considering renewal options expected to be exercised. Property and equipment consisted of the following (in millions): December 29, 2019 December 30, 2018 Land $ 12.2 $ 12.2 Buildings and leasehold improvements: Buildings 7.8 7.9 Leasehold improvements 25.5 20.5 Branch equipment 47.9 36.8 Office furniture and fixtures and vehicles: Office furniture and fixtures 21.4 19.1 Vehicles 30.2 58.1 Finance lease right-of-use assets 46.3 — Tooling 0.1 0.1 Construction in process 2.9 2.0 Total Property and equipment, gross 194.3 156.7 Less: accumulated depreciation and amortization 89.4 68.3 Total Property and equipment, net $ 104.9 $ 88.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 29, 2019 and December 30, 2018 are as follows (in millions): For the year For the year Beginning balance $ 148.4 $ 106.5 Goodwill acquired during the year 29.7 41.7 Goodwill adjusted during the year 3.2 0.2 Ending balance $ 181.3 $ 148.4 |
Summary of Components of Intangible Assets | The following table summarizes the components of intangible assets (in millions): December 29, 2019 December 30, 2018 Weighted Average Remaining Useful Life (in Years) Amount Accumulated Net Amount Accumulated Net Customer relationships 16.9 years $ 267.9 $ 124.4 $ 143.5 $ 243.0 $ 95.6 $ 147.4 Trademarks and other 3.3 years 17.0 9.9 7.1 14.6 6.4 8.2 Total intangibles $ 284.9 $ 134.3 $ 150.6 $ 257.6 $ 102.0 $ 155.6 |
Schedule of Future Amortization Expense | Total future amortization estimated as of December 29, 2019 , is as follows (in millions): Fiscal year ending: 2020 $ 29.4 2021 24.5 2022 20.1 2023 16.0 2024 12.5 Thereafter 48.1 Total future amortization $ 150.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Schedule of Lease Costs | Average lease terms and discount rates were as follows: Lease Term and Discount Rate December 29, 2019 Weighted-average remaining lease term (years) Finance leases 3.7 Operating leases 7.1 Weighted-average discount rate Finance leases 4.6 % Operating leases 5.9 % The components of lease expense were as follows (in millions): Lease cost Classification For the year December 31, 2018 to December 29, 2019 Finance lease cost Amortization of right-of-use assets Selling, general and administrative expenses $ 6.7 Interest on lease liabilities Interest and other non-operating expenses, net 0.8 Operating lease cost Cost of goods sold 3.2 Operating lease cost Selling, general and administrative expenses 60.1 Short-term lease cost Selling, general and administrative expenses 1.5 Variable lease cost Selling, general and administrative expenses 0.7 Sublease income Selling, general and administrative expenses (0.6 ) Total lease cost $ 72.4 Supplemental cash flow information related to leases was as follows (in millions): Other information For the year December 31, 2018 to December 29, 2019 Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows from finance leases $ 0.8 Operating cash flows from operating leases $ 62.2 Financing cash flows from finance leases $ 6.5 Right-of-use assets obtained in exchange for new lease liabilities: Finance leases $ 15.0 Operating leases $ 76.3 |
Schedule of Future Lease Payments for Operating Leases | The aggregate future lease payments for operating and finance leases as of December 29, 2019 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2020 $ 56.0 $ 7.6 2021 53.1 6.9 2022 43.0 5.3 2023 33.0 3.5 2024 24.0 1.3 Thereafter 86.8 0.2 Total lease payments 295.9 24.8 Less: interest 61.0 1.9 Present value of lease liabilities $ 234.9 $ 22.9 |
Schedule of Future Lease Payments for Finance Leases | The aggregate future lease payments for operating and finance leases as of December 29, 2019 were as follows (in millions): Maturity of Lease Liabilities Operating Leases Finance Leases Fiscal year: 2020 $ 56.0 $ 7.6 2021 53.1 6.9 2022 43.0 5.3 2023 33.0 3.5 2024 24.0 1.3 Thereafter 86.8 0.2 Total lease payments 295.9 24.8 Less: interest 61.0 1.9 Present value of lease liabilities $ 234.9 $ 22.9 |
Schedule of Future Minimum Rental Payments for Operating Leases | As the Company did not restate prior year information for the adoption of ASC 842, future minimum lease payments for operating leases and capital leases as of December 30, 2018 as previously disclosed in the Company’s 2018 Annual Report on Form 10-K and under the previous lease accounting standard, were as follows (in millions): Operating Leases Finance Leases Fiscal year: 2019 $ 54.1 $ 5.8 2020 45.3 4.3 2021 37.7 3.6 2022 28.2 1.9 2023 20.2 0.4 Thereafter 71.4 — Total minimum lease payments $ 256.9 16.0 Less: amount representing interest 1.3 Present value of future minimum lease payments $ 14.7 |
Schedule of Future Minimum Lease Payments for Finance Leases | As the Company did not restate prior year information for the adoption of ASC 842, future minimum lease payments for operating leases and capital leases as of December 30, 2018 as previously disclosed in the Company’s 2018 Annual Report on Form 10-K and under the previous lease accounting standard, were as follows (in millions): Operating Leases Finance Leases Fiscal year: 2019 $ 54.1 $ 5.8 2020 45.3 4.3 2021 37.7 3.6 2022 28.2 1.9 2023 20.2 0.4 Thereafter 71.4 — Total minimum lease payments $ 256.9 16.0 Less: amount representing interest 1.3 Present value of future minimum lease payments $ 14.7 |
Employee Benefit and Stock In_2
Employee Benefit and Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Stock Option Valuation Assumptions | The estimated grant-date fair value of stock options is calculated using the Black-Scholes option-pricing model, based on the following weighted-average assumptions: December 29, 2019 December 30, 2018 December 31, 2017 Risk-free interest rate 2.52% 2.77% 2.11% Expected dividends — — — Expected volatility 25% 25% 30% Expected term (in years) 6.25 6.25 6.25 |
Summary of Stock Option Activity | The following table summarizes the information about stock options as of and for the years ended December 29, 2019 and December 30, 2018 : Number of Weighted Weighted Average Aggregate Outstanding as of December 31, 2017 3,153.9 $ 12.07 7.13 $ 203.8 Granted 289.2 76.77 Exercised (915.0 ) 7.34 Expired or forfeited (64.6 ) 33.18 Outstanding as of December 30, 2018 2,463.5 $ 20.87 6.30 $ 91.5 Granted 297.4 52.51 Exercised (659.9 ) 12.74 Expired or forfeited (102.2 ) 51.94 Outstanding as of December 29, 2019 1,998.8 $ 26.67 5.98 $ 127.5 Exercisable as of December 29, 2019 1,186.2 13.77 4.99 91.0 Unvested and expected to vest after December 29, 2019 812.6 $ 45.50 7.41 $ 36.5 |
Share-based Compensation, Deferred Stock Units Award Outstanding Activity | The following table summarizes other stock-based compensation award activities for the years ended December 29, 2019 and December 30, 2018 : RSUs DSUs PSUs Outstanding as of December 30, 2018 85.9 24.7 — Granted 104.5 11.1 29.8 Exercised/Vested/Settled (26.8 ) (3.0 ) — Expired or forfeited (15.1 ) — (1.4 ) Outstanding as of December 29, 2019 148.5 32.8 28.4 The weighted average grant date fair value of awards granted during the year ended December 29, 2019 was as follows: Weighted Average Stock options $ 16.13 RSUs $ 52.65 DSUs $ 66.27 PSUs $ 51.69 |
Share-based Compensation, Performance Shares Award Outstanding Activity | The following table summarizes other stock-based compensation award activities for the years ended December 29, 2019 and December 30, 2018 : RSUs DSUs PSUs Outstanding as of December 30, 2018 85.9 24.7 — Granted 104.5 11.1 29.8 Exercised/Vested/Settled (26.8 ) (3.0 ) — Expired or forfeited (15.1 ) — (1.4 ) Outstanding as of December 29, 2019 148.5 32.8 28.4 The weighted average grant date fair value of awards granted during the year ended December 29, 2019 was as follows: Weighted Average Stock options $ 16.13 RSUs $ 52.65 DSUs $ 66.27 PSUs $ 51.69 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes other stock-based compensation award activities for the years ended December 29, 2019 and December 30, 2018 : RSUs DSUs PSUs Outstanding as of December 30, 2018 85.9 24.7 — Granted 104.5 11.1 29.8 Exercised/Vested/Settled (26.8 ) (3.0 ) — Expired or forfeited (15.1 ) — (1.4 ) Outstanding as of December 29, 2019 148.5 32.8 28.4 The weighted average grant date fair value of awards granted during the year ended December 29, 2019 was as follows: Weighted Average Stock options $ 16.13 RSUs $ 52.65 DSUs $ 66.27 PSUs $ 51.69 |
Summary of Stock-based Compensation Expense Recognized | A summary of stock-based compensation expenses recognized during the periods was as follows (in millions): For the year For the year Stock options $ 7.8 $ 6.0 RSUs 2.5 1.4 DSUs 0.9 0.5 PSUs 0.5 — Total stock-based compensation $ 11.7 $ 7.9 |
Summary of Unrecognized Stock-based Compensation Expense | A summary of unrecognized stock-based compensation expense as of December 29, 2019 was as follows: Unrecognized Compensation Weighted Average Stock options $ 7.7 2.35 RSUs $ 5.9 2.72 DSUs $ 0.5 1.36 PSUs $ 1.0 2.00 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt was as follows (in millions): December 29, 2019 December 30, 2018 ABL facility $ 92.8 $ 123.1 Term loan facility 441.8 446.2 Total gross long-term debt 534.6 569.3 Less: unamortized debt issuance costs and discounts on debt (9.7 ) (11.1 ) Total debt $ 524.9 $ 558.2 Less: current portion (4.5 ) (4.5 ) Total long-term debt $ 520.4 $ 553.7 |
Schedule of Maturities of Long-term Debt Outstanding | Maturities of long-term debt outstanding, in principal amounts at December 29, 2019 are summarized below (in millions): Fiscal year: 2020 $ 5.6 2021 4.5 2022 4.5 2023 4.5 2024 515.5 Total $ 534.6 |
Schedule of Details Related to Interest Rate Contracts | The following table provides additional details related to the swap contracts: Derivatives designated as hedging instruments Inception Date Effective Date Maturity Date Notional Amount Fixed Interest Rate Type of Hedge Forward-starting interest rate swap 1 June 30, 2017 March 11, 2019 June 11, 2021 $ 58.0 2.1345 % Cash flow Forward-starting interest rate swap 2 June 30, 2017 March 11, 2019 June 11, 2021 116.0 2.1510 % Cash flow Forward-starting interest rate swap 3 December 17, 2018 July 14, 2020 January 14, 2024 34.0 2.9345 % Cash flow Forward-starting interest rate swap 4 December 24, 2018 January 14, 2019 January 14, 2023 50.0 2.7471 % Cash flow Forward-starting interest rate swap 5 December 26, 2018 January 14, 2019 January 14, 2023 90.0 2.7250 % Cash flow Forward-starting interest rate swap 6 May 30, 2019 July 15, 2019 January 14, 2023 70.0 2.1560 % Cash flow December 29, 2019 and December 30, 2018 (in millions): Derivative Assets Derivative Liabilities December 29, 2019 December 30, 2018 December 29, 2019 December 30, 2018 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments Interest rate contracts Prepaid expenses and other current assets $ — Prepaid expenses and other current assets $ 0.7 Accrued liabilities $ 2.1 Accrued liabilities $ — Other assets — Other assets 1.1 Other long-term liabilities 5.3 Other long-term liabilities 0.7 Total derivatives $ — $ 1.8 $ 7.4 $ 0.7 |
Schedule of Pre-tax Amounts of Derivatives Designated as Cash Flow Hedges in AOCI | The table below details pre-tax amounts in AOCI and gain (loss) reclassified into income for derivatives designated as cash flow hedges for the years ended December 29, 2019 and December 30, 2018 (in millions): December 29, 2019 December 30, 2018 Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Recorded in OCI Classification of Gain (Loss) Reclassified from AOCI into Income Gain (Loss) Reclassified from AOCI into Income Derivatives in Cash Flow Hedging Relationships Interest rate contracts $ (8.5 ) Interest and other non-operating expenses, net $ (0.1 ) $ 0.5 Interest and other non-operating expenses, net $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Net Income (Loss) Before Taxes | Components of Net income before taxes were as follows (in millions): For the year For the year For the year U.S. $ 87.5 $ 71.8 $ 69.2 Foreign 4.0 3.4 3.4 Total $ 91.5 $ 75.2 $ 72.6 |
Components of Income Tax Expense (Benefit) | Components of Income tax expense were as follows (in millions): For the year For the year For the year Current income tax expense U.S. federal $ 11.7 $ 4.8 $ 28.7 U.S. state and local 4.4 2.6 4.9 Foreign 1.1 1.0 0.9 Total current 17.2 8.4 34.5 Deferred income tax (benefit) expense U.S. federal (2.0 ) (4.8 ) (15.5 ) U.S. state and local (1.3 ) (2.3 ) (1.0 ) Foreign (0.1 ) — — Total deferred (3.4 ) (7.1 ) (16.5 ) Total $ 13.8 $ 1.3 $ 18.0 |
Reconciliation of Income Tax Expense (Benefit) | The following table provides a reconciliation of income tax expense (benefit) at the statutory U.S. federal tax rate to actual income tax expense (benefit) for the periods presented (in millions): For the year For the year For the year U.S. federal statutory expense $ 19.2 $ 15.8 $ 25.4 State and local income taxes, net 2.2 * (0.2 ) * 2.0 * Excess tax benefits (7.7 ) (13.2 ) (6.1 ) Enactment of 2017 Tax Act - deferred tax re-measurement, net — (0.1 ) (4.5 ) Enactment of 2017 Tax Act - transition tax — (1.0 ) 1.3 Transaction costs — 0.2 0.4 Other, net 0.1 (0.2 ) (0.5 ) Income tax expense $ 13.8 $ 1.3 $ 18.0 * Includes excess tax benefits pursuant to ASU 2016-09 of $(1.9) million , $(3.1) million and $(0.7) million for the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , respectively. |
Significant Components of Deferred Income Taxes | The significant components of deferred income taxes are as follows (in millions): December 29, 2019 December 30, 2018 Deferred tax assets: Net operating losses $ 6.2 $ 6.6 Allowance for uncollectible accounts 4.9 3.7 Inventory 2.7 3.2 Reserve for sales bonuses 4.2 4.3 Accrued compensation 2.0 2.1 Stock compensation 4.6 3.1 Rent accrual — 1.9 Environmental reserve 0.6 0.6 Deferred transaction costs 2.0 1.8 Operating lease liabilities 60.6 — Interest rate swaps 1.9 — Other 1.5 1.9 Total gross deferred tax assets 91.2 29.2 Valuation allowance (4.6 ) (4.8 ) Total net deferred tax assets 86.6 24.4 Deferred tax liabilities: Fixed assets and land (12.0 ) (7.9 ) Intangible assets (10.9 ) (17.4 ) Goodwill (4.7 ) (3.4 ) Deferred financing costs (1.1 ) (1.3 ) Operating lease right-of-use assets (58.0 ) — Other (1.2 ) (1.5 ) Total deferred tax liabilities (87.9 ) (31.5 ) Net deferred tax liabilities $ (1.3 ) $ (7.1 ) Deferred taxes are recorded as follows in the Consolidated Balance Sheets (in millions): December 29, 2019 December 30, 2018 U.S. state and local net deferred tax assets $ 1.7 $ — Foreign net deferred tax assets 0.2 — U.S. state and local and Foreign net deferred tax assets 1.9 — U.S. federal net deferred tax liabilities (3.2 ) (7.0 ) U.S. state and local net deferred tax liabilities — (0.1 ) U.S. federal and U.S. state and local net deferred tax liabilities (3.2 ) (7.1 ) Net deferred tax liabilities $ (1.3 ) $ (7.1 ) |
Activity Within the Tax Valuation Allowance | Activity within the tax valuation allowance for the periods was as follows (in millions): For the year For the year For the year Beginning balance $ 4.8 $ 5.2 $ 4.1 Increase in valuation allowance — — 1.1 Decrease in valuation allowance (0.2 ) (0.4 ) — Ending balance $ 4.6 $ 4.8 $ 5.2 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | For the years ended December 29, 2019 , December 30, 2018 , and December 31, 2017 , the assumed exercises of a portion of the Company’s employee stock options and RSUs were anti-dilutive and, therefore, the following potential shares of common stock were not included in the diluted loss per common share calculation: December 29, 2019 December 30, 2018 December 31, 2017 Weighted average potential common shares excluded because anti-dilutive Employee Stock Options and RSUs 258,829 278,728 13,798 |
Nature of Business and Signif_4
Nature of Business and Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 29, 2019USD ($)store | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Number of stores (over) | store | 550 | ||
Reserve for obsolete and excess inventory | $ 8,000,000 | $ 6,800,000 | |
Goodwill impairment | 0 | 0 | $ 0 |
Impairment of long-lived assets | 0 | 0 | 0 |
Warranty reserve | 200,000 | 500,000 | |
Advertising costs | $ 3,300,000 | $ 3,100,000 | $ 2,100,000 |
Geographic Concentration Risk | Sales | Canada and Other Countries | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (less than) | 2.00% | ||
Stock options | |||
Concentration Risk [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Concentration Risk [Line Items] | |||
Extended lease term | 1 year | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Extended lease term | 5 years |
Nature of Business and Signif_5
Nature of Business and Significant Accounting Policies - Refinancing and Amendments of Term Loan and Special Cash Dividend (Details) - USD ($) | Aug. 14, 2018 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Repayments of asset-based credit facility | $ 304,000,000 | $ 410,000,000 | $ 350,400,000 | |
Term loan facility | ||||
Debt Instrument [Line Items] | ||||
Face amount of loan | $ 447,400,000 | |||
ABL facility | ||||
Debt Instrument [Line Items] | ||||
Repayments of asset-based credit facility | 96,800,000 | |||
Tranche E Term Loans | Term loan facility | ||||
Debt Instrument [Line Items] | ||||
Face amount of loan | $ 347,400,000 |
Nature of Business and Signif_6
Nature of Business and Significant Accounting Policies - Initial Public Offering and Secondary Offerings (Details) - Common stock - $ / shares | Jul. 20, 2017 | May 01, 2017 | Jul. 26, 2017 |
Over-Allotment Option for Underwriters | |||
Subsidiary, Sale of Stock [Line Items] | |||
Shares issued in public offering (shares) | 1,500,000 | ||
Secondary Offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Offering price (in dollars per share) | $ 47.50 | $ 51.63 | |
Shares issued in public offering (shares) | 5,437,502 | 10,000,000 |
Nature of Business and Signif_7
Nature of Business and Significant Accounting Policies - Basis of Financial Statement Presentation (Details) $ in Millions | Dec. 23, 2013USD ($) |
SiteOne Landscape Supply Holding, LLC | |
Business Acquisition [Line Items] | |
Percentage of ownership | 100.00% |
CD&R | |
Business Acquisition [Line Items] | |
Ownership interest acquired | 100.00% |
Cash consideration | $ 314 |
CD&R | Common stock | |
Business Acquisition [Line Items] | |
Equity interest issued, percentage of outstanding stock | 40.00% |
Redeemable Convertible Preferred Stock | CD&R | |
Business Acquisition [Line Items] | |
Equity interest issued, percentage of outstanding stock | 60.00% |
Equity interest issued, value | $ 174 |
Nature of Business and Signif_8
Nature of Business and Significant Accounting Policies - Activity in the Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for doubtful accounts, beginning balance | $ 5.9 | $ 4.7 | $ 4.3 |
Provision (reduction) for allowance | 5.9 | 2.9 | 2 |
Write-offs, net of recoveries | (3.5) | (1.7) | (1.6) |
Allowance for doubtful accounts, ending balance | $ 8.3 | $ 5.9 | $ 4.7 |
Nature of Business and Signif_9
Nature of Business and Significant Accounting Policies - Property, Plant and Equipment, Net (Details) | 12 Months Ended |
Dec. 29, 2019 | |
Buildings and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 20 years |
Branch equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Branch equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 12 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 12 years |
Auto and truck | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 2 years |
Auto and truck | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 6 years |
Tooling | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 7 years |
Nature of Business and Signi_10
Nature of Business and Significant Accounting Policies - Impact of Adoption on Balance Sheet (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 31, 2018 | Dec. 30, 2018 |
Assets | |||
Prepaid expenses and other current assets | $ 29.3 | $ 36.4 | $ 41.1 |
Operating lease right-of-use assets, net | 231 | 203.8 | |
Other assets | 7.8 | 10.1 | 10.7 |
Liabilities [Abstract] | |||
Accrued liabilities | 49.1 | 45.1 | 46 |
Current portion of operating leases | 48.6 | 40.9 | |
Other long-term liabilities | 13.2 | 6.9 | $ 14 |
Operating leases, less current portion | $ 186.3 | 165.6 | |
Accounting Standards Update 2016-02 | |||
Assets | |||
Prepaid expenses and other current assets | (4.7) | ||
Operating lease right-of-use assets, net | 203.8 | ||
Other assets | (0.6) | ||
Liabilities [Abstract] | |||
Accrued liabilities | (0.9) | ||
Current portion of operating leases | 40.9 | ||
Other long-term liabilities | (7.1) | ||
Operating leases, less current portion | $ 165.6 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,357.5 | $ 2,112.3 | $ 1,861.7 |
Landscaping products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,670.7 | 1,468.4 | 1,265.4 |
Agronomic and other products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 686.8 | $ 643.9 | $ 596.3 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) | Dec. 29, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Remaining performance obligations | $ 6.5 | |
Contract liabilities | 6.5 | $ 7.4 |
Revenue recognized | $ 8.8 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) $ in Millions | 12 Months Ended | |||||||||||||||||||||||||
Dec. 29, 2019USD ($)locationstore | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019location | Aug. 31, 2019location | Jul. 31, 2019location | May 31, 2019location | Apr. 30, 2019location | Feb. 28, 2019location | Jan. 31, 2019location | Dec. 31, 2018location | Oct. 31, 2018location | Jul. 31, 2018location | Jun. 30, 2018location | May 31, 2018location | Apr. 30, 2018location | Mar. 31, 2018location | Feb. 28, 2018locationstateprovince | Jan. 31, 2018location | Oct. 31, 2017location | Sep. 30, 2017location | Aug. 31, 2017location | May 31, 2017location | Mar. 31, 2017location | Feb. 28, 2017location | Jan. 31, 2017location | |
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Goodwill acquired | $ | $ 29.7 | $ 41.7 | ||||||||||||||||||||||||
Number of locations | store | 550 | |||||||||||||||||||||||||
2019 Acquisitions | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Aggregate purchase price | $ | $ 70.7 | |||||||||||||||||||||||||
Deferred contingent consideration | $ | 6.4 | |||||||||||||||||||||||||
Aggregate assets acquired | $ | 69.5 | |||||||||||||||||||||||||
Aggregate liabilities assumed | $ | 22.1 | |||||||||||||||||||||||||
Goodwill acquired | $ | $ 29.7 | |||||||||||||||||||||||||
2018 Acquisitions | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Aggregate purchase price | $ | 148.9 | |||||||||||||||||||||||||
Deferred contingent consideration | $ | 5.7 | |||||||||||||||||||||||||
Aggregate assets acquired | $ | 142.2 | |||||||||||||||||||||||||
Aggregate liabilities assumed | $ | 29.3 | |||||||||||||||||||||||||
Goodwill acquired | $ | $ 41.7 | |||||||||||||||||||||||||
2017 Acquisitions | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Aggregate purchase price | $ | $ 83.1 | |||||||||||||||||||||||||
Deferred contingent consideration | $ | 5 | |||||||||||||||||||||||||
Aggregate assets acquired | $ | 67.6 | |||||||||||||||||||||||||
Aggregate liabilities assumed | $ | 15.4 | |||||||||||||||||||||||||
Goodwill acquired | $ | $ 35.9 | |||||||||||||||||||||||||
Daniel Stone & Landscaping Supplies, Inc | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Dirt Doctors, Inc | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 3 | |||||||||||||||||||||||||
Design Outdoor | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Trendset | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Voss | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 5 | |||||||||||||||||||||||||
Stone and Soil Depot, Inc. | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 3 | |||||||||||||||||||||||||
Fisher's | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
Landscape Depot | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 3 | |||||||||||||||||||||||||
All Pro Horticulture, Inc. | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Cutting Edge | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
All Around | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 4 | |||||||||||||||||||||||||
C&C | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 4 | |||||||||||||||||||||||||
CentralPro | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 11 | |||||||||||||||||||||||||
Stone Center | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Kirkwood | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 8 | |||||||||||||||||||||||||
Landscape Xpress | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 4 | |||||||||||||||||||||||||
All American | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Auto-Rain | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 5 | |||||||||||||||||||||||||
Landscaper's Choice | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
Terrazzo | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
Village | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 3 | |||||||||||||||||||||||||
Atlantic | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 33 | |||||||||||||||||||||||||
Number of states | state | 12 | |||||||||||||||||||||||||
Number of provinces | province | 2 | |||||||||||||||||||||||||
Pete Rose | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Harmony Gardens | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
Marshall Stone | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
South Coast Supply | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
Evergreen | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
Angelo's Supplies | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 | |||||||||||||||||||||||||
Stone Forest Materials | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 1 | |||||||||||||||||||||||||
Aspen Valley Landscape Supply | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 3 | |||||||||||||||||||||||||
Los Angeles | American Builder Supply | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 10 | |||||||||||||||||||||||||
Las Vegas | American Builder Supply | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Number of locations | 2 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Long-Lived Tangible Asset [Line Items] | ||
Finance lease right-of-use assets | $ 46.3 | |
Total Property and equipment, gross | 194.3 | $ 156.7 |
Less: accumulated depreciation and amortization | 89.4 | 68.3 |
Total property and equipment, net | 104.9 | 88.4 |
Land | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 12.2 | 12.2 |
Buildings | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 7.8 | 7.9 |
Leasehold improvements | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 25.5 | 20.5 |
Branch equipment | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 47.9 | 36.8 |
Office furniture and fixtures | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 21.4 | 19.1 |
Vehicles | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 30.2 | 58.1 |
Tooling | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | 0.1 | 0.1 |
Construction in process | ||
Long-Lived Tangible Asset [Line Items] | ||
Property, plant and equipment, gross | $ 2.9 | $ 2 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Amortization of finance lease right-of-use assets and depreciation | $ 25.1 | $ 21.5 | $ 17.6 |
Capitalized software costs | 10.9 | 8.9 | |
Accumulated amortization of capitalized software | 7.4 | 5.2 | |
Amortization of software costs | $ 2.1 | $ 2.1 | $ 1.6 |
Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life (in years) | 3 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 148.4 | $ 106.5 |
Goodwill acquired during the year | 29.7 | 41.7 |
Goodwill adjusted during the year | 3.2 | 0.2 |
Ending balance | $ 181.3 | $ 148.4 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of the Components of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amount | $ 284.9 | $ 257.6 |
Accumulated Amortization | 134.3 | 102 |
Net | $ 150.6 | $ 155.6 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 16 years 10 months 24 days | 16 years 10 months 24 days |
Amount | $ 267.9 | $ 243 |
Accumulated Amortization | 124.4 | 95.6 |
Net | $ 143.5 | $ 147.4 |
Trademarks and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life (in years) | 3 years 3 months 18 days | 3 years 3 months 18 days |
Amount | $ 17 | $ 14.6 |
Accumulated Amortization | 9.9 | 6.4 |
Net | $ 7.1 | $ 8.2 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Finite-lived intangible assets acquired | 27,300,000 | 71,400,000 | |
Amortization of intangible assets | 32,300,000 | 28,700,000 | $ 23,900,000 |
Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 24,900,000 | 64,500,000 | |
Weighted average useful life | 20 years | ||
Trademarks and other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 2,400,000 | $ 6,900,000 | |
Weighted average useful life | 5 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2020 | $ 29.4 | |
2021 | 24.5 | |
2022 | 20.1 | |
2023 | 16 | |
2024 | 12.5 | |
Thereafter | 48.1 | |
Net | $ 150.6 | $ 155.6 |
Leases - Components of Leases E
Leases - Components of Leases Expense (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2019USD ($) | |
Finance lease cost | |
Amortization of right-of-use assets | $ 6.7 |
Interest on lease liabilities | 0.8 |
Short-term lease cost | 1.5 |
Variable lease cost | 0.7 |
Sublease income | (0.6) |
Total lease cost | 72.4 |
Cost of goods sold | |
Finance lease cost | |
Operating lease cost | 3.2 |
Selling, general and administrative expenses | |
Finance lease cost | |
Operating lease cost | $ 60.1 |
Leases- Supplemental Cash Flow
Leases- Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Cash paid for amounts included in the measurements of lease liabilities: | |||
Operating cash flows from finance leases | $ 0.8 | ||
Operating cash flows from operating leases | 62.2 | ||
Financing cash flows from finance leases | 6.5 | $ 6.2 | $ 5.1 |
Financing cash flows from finance leases | |||
Finance leases | 15 | ||
Operating leases | $ 76.3 |
Leases- Future Lease Payments f
Leases- Future Lease Payments for Operating and Finance Leases (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Operating Leases | ||
2020 | $ 56 | |
2021 | 53.1 | |
2022 | 43 | |
2023 | 33 | |
2024 | 24 | |
Thereafter | 86.8 | |
Total lease payments | 295.9 | |
Less: interest | 61 | |
Present value of lease liabilities | 234.9 | |
Finance Leases | ||
2020 | 7.6 | |
2021 | 6.9 | |
2022 | 5.3 | |
2023 | 3.5 | |
2024 | 1.3 | |
Thereafter | 0.2 | |
Total lease payments | 24.8 | |
Less: interest | 1.9 | |
Present value of lease liabilities | $ 22.9 | |
Operating Leases | ||
2019 | $ 54.1 | |
2020 | 45.3 | |
2021 | 37.7 | |
2022 | 28.2 | |
2023 | 20.2 | |
Thereafter | 71.4 | |
Total minimum lease payments | 256.9 | |
Finance Leases | ||
2019 | 5.8 | |
2020 | 4.3 | |
2021 | 3.6 | |
2022 | 1.9 | |
2023 | 0.4 | |
Thereafter | 0 | |
Total minimum lease payments | 16 | |
Less: amount representing interest | 1.3 | |
Present value of future minimum lease payments | $ 14.7 |
Leases Leases- Lease Term and D
Leases Leases- Lease Term and Discount Rate (Details) | Dec. 29, 2019 |
Weighted-average remaining lease term (years) | |
Finance leases | 3 years 8 months 12 days |
Operating leases | 7 years 1 month 6 days |
Weighted-average discount rate | |
Finance leases | 4.60% |
Operating leases | 5.90% |
Employee Benefit and Stock In_3
Employee Benefit and Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contributions to the defined contribution benefit plan made by Company | $ 8.5 | $ 7.5 | $ 6.4 |
Number of shares authorized | 2,000,000 | ||
Number of shares available for grant | 753,375 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
Stock options | 25% vested in year 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Stock options | 25% vested in year 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Stock options | 25% vested in year 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
Stock options | 25% vested in year 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 10 years | ||
RSUs | 25% vested in year 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
RSUs | 25% vested in year 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
RSUs | 25% vested in year 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
RSUs | 25% vested in year 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 25.00% | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years |
Employee Benefit and Stock In_4
Employee Benefit and Stock Incentive Plans - Assumptions (Details) - Stock options | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.52% | 2.77% | 2.11% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected volatility | 25.00% | 25.00% | 30.00% |
Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Employee Benefit and Stock In_5
Employee Benefit and Stock Incentive Plans - Stock Option Activities (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Number of Shares (in thousands) | |||
Outstanding, beginning balance (in shares) | 2,463,500 | 3,153,900 | |
Granted (in shares) | 297,400 | 289,200 | |
Exercised (in shares) | (659,900) | (915,000) | |
Expired or forfeited (in shares) | (102,200) | (64,600) | |
Outstanding, ending balance (in shares) | 1,998,800 | 2,463,500 | 3,153,900 |
Exercisable (in shares) | 1,186,200 | ||
Unvested and expected to vest (in shares) | 812,600 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 20.87 | $ 12.07 | |
Granted (in dollars per share) | 52.51 | 76.77 | |
Exercised (in dollars per share) | 12.74 | 7.34 | |
Expired or forfeited (in dollars per share) | 51.94 | 33.18 | |
Outstanding, ending balance (in dollars per share) | 26.67 | $ 20.87 | $ 12.07 |
Exercisable (in dollars per share) | 13.77 | ||
Unvested and expected to vest (in dollars per share) | $ 45.50 | ||
Weighted Average Remaining Contractual Term (Years) | |||
Outstanding, Weighted Average Remaining Contractual Term (Years) | 5 years 11 months 23 days | 6 years 3 months 18 days | 7 years 1 month 17 days |
Exercisable, Weighted Average Remaining Contractual Term (Years) | 4 years 11 months 26 days | ||
Unvested and Expected to Vest, Weighted Average Remaining Contractual Term (Years) | 7 years 4 months 28 days | ||
Aggregate Intrinsic Value (in millions) | |||
Outstanding, Aggregate Intrinsic Value | $ 127.5 | $ 91.5 | $ 203.8 |
Exercisable, Aggregate Intrinsic Value | 91 | ||
Unvested and Expected to Vest, Aggregate Intrinsic Value | $ 36.5 |
Employee Benefit and Stock In_6
Employee Benefit and Stock Incentive Plans - Summary of Stock-based Compensation Activities (Details) | 12 Months Ended |
Dec. 29, 2019shares | |
RSUs | |
Number of Shares (in thousands) | |
Outstanding, beginning balance (in shares) | 85,900 |
Granted (in shares) | 104,500 |
Exercised/Vested/Settled (in shares) | (26,800) |
Expired or forfeited (in shares) | (15,100) |
Outstanding, ending balance (in shares) | 148,500 |
DSUs | |
Number of Shares (in thousands) | |
Outstanding, beginning balance (in shares) | 24,700 |
Granted (in shares) | 11,100 |
Exercised/Vested/Settled (in shares) | (3,000) |
Expired or forfeited (in shares) | 0 |
Outstanding, ending balance (in shares) | 32,800 |
PSUs | |
Number of Shares (in thousands) | |
Outstanding, beginning balance (in shares) | 0 |
Granted (in shares) | 29,800 |
Exercised/Vested/Settled (in shares) | 0 |
Expired or forfeited (in shares) | (1,400) |
Outstanding, ending balance (in shares) | 28,400 |
Employee Benefit and Stock In_7
Employee Benefit and Stock Incentive Plans - Weighted-average Grant Date Fair Value of Awards Granted (Details) | 12 Months Ended |
Dec. 29, 2019$ / shares | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value (in dollars per share) | $ 16.13 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value (in dollars per share) | 52.65 |
DSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value (in dollars per share) | 66.27 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value (in dollars per share) | $ 51.69 |
Employee Benefit and Stock In_8
Employee Benefit and Stock Incentive Plans - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | $ 11.7 | $ 7.9 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | 7.8 | 6 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | 2.5 | 1.4 |
DSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | 0.9 | 0.5 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expenses recognized | $ 0.5 | $ 0 |
Employee Benefit and Stock In_9
Employee Benefit and Stock Incentive Plans - Unrecognized Stock-based Compensation Expense (Details) (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2019USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 7.7 |
Weighted Average Remaining Period | 2 years 4 months 6 days |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 5.9 |
Weighted Average Remaining Period | 2 years 8 months 19 days |
DSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 0.5 |
Weighted Average Remaining Period | 1 year 4 months 9 days |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 1 |
Weighted Average Remaining Period | 2 years |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Debt Instrument [Line Items] | ||
Loan facility | $ 534.6 | $ 569.3 |
Less: unamortized debt issuance costs and discounts on debt | (9.7) | (11.1) |
Total debt | 524.9 | 558.2 |
Less current portion | (4.5) | (4.5) |
Total long-term debt | 520.4 | 553.7 |
ABL facility | ||
Debt Instrument [Line Items] | ||
Loan facility | 92.8 | 123.1 |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Loan facility | $ 441.8 | $ 446.2 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Aug. 14, 2018 | Oct. 19, 2015 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Feb. 01, 2019 |
Debt Instrument [Line Items] | ||||||
Repayments of asset-based credit facility | $ 304,000,000 | $ 410,000,000 | $ 350,400,000 | |||
Interest expense | 33,400,000 | 32,100,000 | 25,200,000 | |||
Interest expense related to ABL facility and Term Loan Facility | 30,100,000 | 27,100,000 | 21,800,000 | |||
Write off of debt issuance costs and discounts | 400,000 | 700,000 | 100,000 | |||
Discounts and debt issuance costs capitalized | 900,000 | 2,400,000 | 2,200,000 | |||
Amortization expense related to debt issuance costs | 2,000,000 | 3,100,000 | 3,000,000 | |||
Interest expense incurred related to capital leases | 900,000 | 1,200,000 | 300,000 | |||
Unrealized gain (loss) on interest rate swaps, net of taxes of $2.3, ($0.2), and ($0.2), respectively | (6,200,000) | 300,000 | $ 400,000 | |||
Ineffectiveness recorded in earnings | 0 | |||||
ABL facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 375,000,000 | |||||
Remaining borrowing capacity under credit facility | $ 263,400,000 | $ 197,500,000 | ||||
Commitment fee for the unfunded amount (percent) | 0.25% | 0.25% | ||||
Repayments of asset-based credit facility | $ 96,800,000 | |||||
ABL facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on credit facility (percent) | 3.21% | 4.10% | ||||
ABL facility | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (percent) | 1.25% | |||||
ABL facility | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (percent) | 1.75% | |||||
ABL facility | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (percent) | 0.25% | |||||
ABL facility | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (percent) | 0.75% | |||||
Term loan facility | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of loan | $ 447,400,000 | |||||
Percentage of excess cash flow to be paid for annual mandatory prepayments | 50.00% | |||||
Amount of excess cash flows which triggers mandatory prepayment | $ 10,000,000 | |||||
Leverage ratio | 3 | |||||
Tranche B Term Loans | Term loan facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on outstanding borrowings (percent) | 4.46% | |||||
Tranche B Term Loans | Term loan facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (percent) | 2.75% | |||||
Tranche B Term Loans | Term loan facility | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, basis spread on variable rate (percent) | 1.75% | |||||
Tranche E Term Loans | Term loan facility | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of loan | $ 347,400,000 | |||||
Quarterly payment as percentage of initial principal amount | 0.25% | |||||
Interest rate swap | ||||||
Debt Instrument [Line Items] | ||||||
Unrealized gain (loss) on interest rate swaps, net of taxes of $2.3, ($0.2), and ($0.2), respectively | $ (5,500,000) | |||||
Interest rate swap | Other assets | ||||||
Debt Instrument [Line Items] | ||||||
Fair value changes in forward-starting interest rate swaps | $ 1,500,000 |
Long-Term Debt - Maturities of
Long-Term Debt - Maturities of Long-term Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 5.6 | |
2021 | 4.5 | |
2022 | 4.5 | |
2023 | 4.5 | |
2024 | 515.5 | |
Total | $ 534.6 | $ 569.3 |
Long-Term Debt - Interest Rate
Long-Term Debt - Interest Rate Swaps (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions | Dec. 26, 2018 | Dec. 24, 2018 | Dec. 17, 2018 | Jun. 30, 2017 |
Forward-starting interest rate swap 1 | ||||
Derivative [Line Items] | ||||
Notional Amount (in millions) | $ 58 | |||
Fixed Interest Rate | 2.1345% | |||
Forward-starting interest rate swap 2 | ||||
Derivative [Line Items] | ||||
Notional Amount (in millions) | $ 116 | |||
Fixed Interest Rate | 2.151% | |||
Forward-starting interest rate swap 3 | ||||
Derivative [Line Items] | ||||
Notional Amount (in millions) | $ 34 | |||
Fixed Interest Rate | 2.9345% | |||
Forward-starting interest rate swap 4 | ||||
Derivative [Line Items] | ||||
Notional Amount (in millions) | $ 50 | |||
Fixed Interest Rate | 2.7471% | |||
Forward-starting interest rate swap 5 | ||||
Derivative [Line Items] | ||||
Notional Amount (in millions) | $ 90 | |||
Fixed Interest Rate | 2.725% | |||
Forward-starting interest rate swap 6 | ||||
Derivative [Line Items] | ||||
Notional Amount (in millions) | $ 70 | |||
Fixed Interest Rate | 2.156% |
Long-Term Debt - Summary of Fai
Long-Term Debt - Summary of Fair Value of Interest Rate Derivatives (Details) - Derivatives designated as hedging instruments - Interest rate contracts - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Derivative [Line Items] | ||
Derivative Assets | $ 0 | $ 1.8 |
Derivative Liabilities | 7.4 | 0.7 |
Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 0.7 |
Accrued liabilities | ||
Derivative [Line Items] | ||
Derivative Liabilities | 2.1 | 0 |
Other assets | ||
Derivative [Line Items] | ||
Derivative Assets | 0 | 1.1 |
Other long-term liabilities | ||
Derivative [Line Items] | ||
Derivative Liabilities | $ 5.3 | $ 0.7 |
Long-Term Debt - Pre-tax Amount
Long-Term Debt - Pre-tax Amounts of Derivatives Designated as Cash Flow Hedges in AOCI (Details) (Details) - Interest rate swap - Interest and other non-operating expenses, net - USD ($) $ in Millions | 12 Months Ended | |
Dec. 29, 2019 | Dec. 30, 2018 | |
Derivative [Line Items] | ||
Gain (Loss) Recorded in OCI | $ (8.5) | $ 0.5 |
Gain (Loss) Reclassified from AOCI into Income | $ (0.1) | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 15.10% | 1.70% | 24.80% | |
Undistributed earnings of foreign subsidiaries | $ 14,400,000 | |||
Amount of unrecognized deferred tax liability | 700,000 | |||
Valuation allowance | 4,600,000 | $ 4,800,000 | $ 5,200,000 | $ 4,100,000 |
Federal NOL carryforwards | 1,100,000 | |||
State NOL carryforwards | 5,100,000 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Income (Loss) Before Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 87.5 | $ 71.8 | $ 69.2 |
Foreign | 4 | 3.4 | 3.4 |
Income before taxes | $ 91.5 | $ 75.2 | $ 72.6 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Current income tax expense | |||
U.S. federal | $ 11.7 | $ 4.8 | $ 28.7 |
U.S. state and local | 4.4 | 2.6 | 4.9 |
Foreign | 1.1 | 1 | 0.9 |
Total current | 17.2 | 8.4 | 34.5 |
Deferred income tax (benefit) expense | |||
U.S. federal | (2) | (4.8) | (15.5) |
U.S. state and local | (1.3) | (2.3) | (1) |
Foreign | (0.1) | 0 | 0 |
Total deferred | (3.4) | (7.1) | (16.5) |
Total | $ 13.8 | $ 1.3 | $ 18 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
U.S. federal statutory expense | $ 19.2 | $ 15.8 | $ 25.4 |
State and local income taxes, net | 2.2 | (0.2) | 2 |
Excess tax benefits | (7.7) | (13.2) | (6.1) |
Enactment of 2017 Tax Act - deferred tax re-measurement, net | 0 | (0.1) | (4.5) |
Enactment of 2017 Tax Act - transition tax | 0 | (1) | 1.3 |
Transaction costs | 0 | 0.2 | 0.4 |
Other, net | 0.1 | (0.2) | (0.5) |
Total | 13.8 | 1.3 | 18 |
State and local income taxes, net excess tax benefits | 2.2 | (0.2) | 2 |
Accounting Standards Update 2016-09 | |||
Income Tax Contingency [Line Items] | |||
State and local income taxes, net | (1.9) | (3.1) | (0.7) |
State and local income taxes, net excess tax benefits | $ (1.9) | $ (3.1) | $ (0.7) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Deferred tax assets: | ||||
Net operating losses | $ 6.2 | $ 6.6 | ||
Allowance for uncollectible accounts | 4.9 | 3.7 | ||
Inventory | 2.7 | 3.2 | ||
Reserve for sales bonuses | 4.2 | 4.3 | ||
Accrued compensation | 2 | 2.1 | ||
Stock compensation | 4.6 | 3.1 | ||
Rent accrual | 0 | 1.9 | ||
Environmental reserve | 0.6 | 0.6 | ||
Deferred transaction costs | 2 | 1.8 | ||
Operating lease liabilities | 60.6 | |||
Interest rate swaps | 1.9 | 0 | ||
Other | 1.5 | 1.9 | ||
Total gross deferred tax assets | 91.2 | 29.2 | ||
Valuation allowance | (4.6) | (4.8) | $ (5.2) | $ (4.1) |
Total net deferred tax assets | 86.6 | 24.4 | ||
Deferred tax liabilities: | ||||
Fixed assets and land | (12) | (7.9) | ||
Intangible assets | (10.9) | (17.4) | ||
Goodwill | (4.7) | (3.4) | ||
Deferred financing costs | (1.1) | (1.3) | ||
Operating lease right-of-use assets | (58) | 0 | ||
Other | (1.2) | (1.5) | ||
Total deferred tax liabilities | (87.9) | (31.5) | ||
Net deferred tax liabilities | $ (1.3) | $ (7.1) |
Income Taxes - Deferred Taxes i
Income Taxes - Deferred Taxes in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 |
Income Tax [Line Items] | ||
Deferred tax assets (Note 1 and Note 9) | $ 1.9 | $ 0 |
Deferred tax liabilities | 3.2 | 7.1 |
Net deferred tax liabilities | (1.3) | (7.1) |
State and local jurisdictions | ||
Income Tax [Line Items] | ||
Deferred tax assets (Note 1 and Note 9) | 1.7 | 0 |
Deferred tax liabilities | 0 | 0.1 |
Foreign | ||
Income Tax [Line Items] | ||
Deferred tax assets (Note 1 and Note 9) | 0.2 | 0 |
U.S. federal tax authority | ||
Income Tax [Line Items] | ||
Deferred tax liabilities | $ 3.2 | $ 7 |
Income Taxes - Activity Within
Income Taxes - Activity Within the Tax Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Valuation Allowance [Roll Forward] | |||
Beginning balance | $ 4.8 | $ 5.2 | $ 4.1 |
Increase in valuation allowance | 0 | 0 | 1.1 |
Decrease in valuation allowance | (0.2) | (0.4) | 0 |
Ending balance | $ 4.6 | $ 4.8 | $ 5.2 |
Related Party Transactions (Det
Related Party Transactions (Details) - Affiliated Entity $ in Millions | 7 Months Ended |
Jul. 26, 2017USD ($) | |
Deere | Financing Fees Paid | |
Related Party Transaction [Line Items] | |
Fees paid related to financing offered to customers | $ 0.3 |
TruGreen | |
Related Party Transaction [Line Items] | |
Net sales with customer included in statement of operations | $ 4.3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |||
Letter of credit, amount outstanding | $ 5,300,000 | $ 4,500,000 | |
Borrowings on asset-based credit facility | 273,700,000 | 406,000,000 | $ 386,400,000 |
Undiscounted cost of future remediation efforts | 3,600,000 | 3,700,000 | |
Amount of liability to be paid by Deere | 2,500,000 | ||
Maximum amount of Company's exposure to environmental liability | 2,400,000 | ||
Indemnification asset recorded against the liability | 1,200,000 | 1,300,000 | |
Letter of credit | |||
Line of Credit Facility [Line Items] | |||
Borrowings on asset-based credit facility | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) | 12 Months Ended | ||
Dec. 29, 2019USD ($)ton | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long-term Purchase Commitment [Line Items] | |||
Expected payments in 2020 | $ 61,800,000 | ||
Expected payments in 2021 | 27,900,000 | ||
Expected payments in 2022 | 7,300,000 | ||
Approximate Purchases | $ 48,000,000 | $ 46,300,000 | $ 33,700,000 |
Purchase commitment minimum (in tons) | ton | 10,000 | ||
Contract period | 18 years | ||
Total purchase commitment (in tons) | ton | 180,000 | ||
Fee for shortfall | $ 288.50 | ||
Various service commitments, future obligation | 6,100,000 | ||
Nursery Products and Grass Seeds | |||
Long-term Purchase Commitment [Line Items] | |||
Total future purchase obligations | $ 97,000,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - shares | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Additional potential common shares included in calculation of diluted earnings per common share (in shares) | 1,531,505 | 2,145,113 | 2,438,835 |
Employee Stock Options and RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average potential common shares excluded because anti-dilutive (in shares) | 258,829 | 278,728 | 13,798 |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 14, 2020location | Jan. 07, 2020location | Jan. 02, 2020location | Dec. 29, 2019store |
Subsequent Event [Line Items] | ||||
Number of locations | store | 550 | |||
Subsequent Event | Wittkopf | ||||
Subsequent Event [Line Items] | ||||
Number of locations | 2 | |||
Subsequent Event | Empire | ||||
Subsequent Event [Line Items] | ||||
Number of locations | 3 | |||
Subsequent Event | Garden dept | ||||
Subsequent Event [Line Items] | ||||
Number of locations | 3 |
Schedule I - SiteOne Landscap_2
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Balance Sheets (Details) - USD ($) $ in Millions | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2017 |
Assets | ||||
Total assets | $ 1,443.3 | $ 1,168.5 | ||
Liabilities and Stockholders’ Equity | ||||
Total liabilities | 1,050.1 | 866.7 | ||
Stockholders' Equity: | ||||
Common stock, par value $0.01; 1,000,000,000 shares authorized; 41,591,727 and 40,910,992 shares issued, and 41,570,816 and 40,890,081 shares outstanding at December 29, 2019 and December 30, 2018, respectively | 0.4 | 0.4 | ||
Additional paid-in capital | 261.5 | 242.1 | ||
Retained earnings | 137.8 | 60.1 | ||
Accumulated other comprehensive loss | (6.5) | (0.8) | ||
Total stockholders’ equity | 393.2 | 301.8 | $ 212.8 | $ 148.8 |
Total liabilities and stockholders’ equity | 1,443.3 | 1,168.5 | ||
Parent Company | ||||
Assets | ||||
Investment in wholly owned subsidiary | 392.4 | 300.8 | ||
Deferred tax asset (Note 3) | 0.8 | 1 | ||
Total assets | 393.2 | 301.8 | ||
Liabilities and Stockholders’ Equity | ||||
Total liabilities | 0 | 0 | ||
Stockholders' Equity: | ||||
Common stock, par value $0.01; 1,000,000,000 shares authorized; 41,591,727 and 40,910,992 shares issued, and 41,570,816 and 40,890,081 shares outstanding at December 29, 2019 and December 30, 2018, respectively | 0.4 | 0.4 | ||
Additional paid-in capital | 261.5 | 242.1 | ||
Retained earnings | 137.8 | 60.1 | ||
Accumulated other comprehensive loss | (6.5) | (0.8) | ||
Total stockholders’ equity | 393.2 | 301.8 | ||
Total liabilities and stockholders’ equity | $ 393.2 | $ 301.8 |
Schedule I - SiteOne Landscap_3
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Balance Sheets (Parenthetical) (Details) - $ / shares | Dec. 29, 2019 | Dec. 30, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 41,591,727 | 40,910,992 |
Common stock, shares outstanding | 41,570,816 | 40,890,081 |
Parent Company | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 41,591,727 | 40,910,992 |
Common stock, shares outstanding | 41,570,816 | 40,890,081 |
Schedule I - SiteOne Landscap_4
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Condensed Income Statement and Comprehensive Income Statement [Line Items] | |||
Income before taxes | $ 91.5 | $ 75.2 | $ 72.6 |
Net income | 77.7 | 73.9 | 54.6 |
Other comprehensive income (loss), net of tax | (5.7) | (0.5) | 0.9 |
Comprehensive income | 72 | 73.4 | 55.5 |
Parent Company | |||
Condensed Income Statement and Comprehensive Income Statement [Line Items] | |||
Equity in net income of subsidiary | 77.7 | 73.9 | 54.6 |
Income before taxes | 77.7 | 73.9 | 54.6 |
Net income | 77.7 | 73.9 | 54.6 |
Other comprehensive income (loss), net of tax | (5.7) | (0.5) | 0.9 |
Comprehensive income | $ 72 | $ 73.4 | $ 55.5 |
Schedule I - SiteOne Landscap_5
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income | $ 77.7 | $ 73.9 | $ 54.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net Cash Provided By Operating Activities | 130.8 | 78.1 | 16.3 |
Cash Flows from Investing Activities: | |||
Net Cash Used In Investing Activities | (91.9) | (164.1) | (98.6) |
Cash Flows from Financing Activities: | |||
Other financing activities | (0.5) | (0.4) | (0.1) |
Net Cash (Used In) Provided By Financing Activities | (37.3) | 86.8 | 82.5 |
Net Change In Cash | 1.7 | 0.6 | 0.4 |
Cash and cash equivalents: | |||
Beginning | 17.3 | 16.7 | 16.3 |
Ending | 19 | 17.3 | 16.7 |
Parent Company | |||
Cash Flows from Operating Activities: | |||
Net income | 77.7 | 73.9 | 54.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in net income of subsidiary | (77.7) | (73.9) | (54.6) |
Distribution from subsidiary | 0 | 0 | 0 |
Net Cash Provided By Operating Activities | 0 | 0 | 0 |
Cash Flows from Investing Activities: | |||
Distribution received from subsidiary | 0 | 0 | 0 |
Net Cash Used In Investing Activities | 0 | 0 | 0 |
Cash Flows from Financing Activities: | |||
Special cash dividend | 0 | 0 | 0 |
Other dividends paid | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net Cash (Used In) Provided By Financing Activities | 0 | 0 | 0 |
Net Change In Cash | 0 | 0 | 0 |
Cash and cash equivalents: | |||
Beginning | 0 | 0 | 0 |
Ending | $ 0 | $ 0 | $ 0 |
Schedule I - SiteOne Landscap_6
Schedule I - SiteOne Landscape Supply, Inc.’s Condensed Financial Statements - Notes to Condensed Parent Company Only Financial Statements (Details) - USD ($) $ in Millions | May 16, 2016 | May 02, 2016 | Dec. 29, 2013 | Dec. 29, 2019 | Dec. 30, 2018 | Dec. 31, 2017 | Jan. 03, 2016 | Dec. 23, 2013 |
Temporary Equity [Line Items] | ||||||||
Deferred tax assets, transaction costs | $ 2 | $ 1.8 | ||||||
Deferred tax asset balance related to Tax Cuts and Jobs Act | 0.8 | |||||||
Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 40.00% | |||||||
Special cash dividend | 0 | 0 | $ 0 | |||||
Parent Company | Redeemable Convertible Preferred Stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 60.00% | |||||||
Common stock | IPO | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Shares of common stock issued as a result of conversion of stock (shares) | 25,303,164 | |||||||
CD&R | Parent Company | Redeemable Convertible Preferred Stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Special cash dividend | $ 112.4 | |||||||
CD&R | Redeemable Convertible Preferred Stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 60.00% | |||||||
CD&R | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Transaction expenses | $ 9.8 | |||||||
Transaction expenses not deductible for tax purposes | 3.7 | |||||||
Tax deductible transaction expenses | $ 6.1 | |||||||
Deferred tax assets, transaction costs | $ 2.2 | |||||||
Amortized transaction costs | 0.4 | 0.4 | ||||||
Amount of deferred tax assets amortized | $ 0.2 | $ 0 | ||||||
CD&R | Common stock | ||||||||
Temporary Equity [Line Items] | ||||||||
Equity interest issued, percentage of outstanding stock | 40.00% | |||||||
SiteOne Landscape Supply Holding, LLC | ||||||||
Temporary Equity [Line Items] | ||||||||
Percentage of ownership of subsidiaries | 100.00% | |||||||
SiteOne Landscape Supply Holding, LLC | Parent Company | ||||||||
Temporary Equity [Line Items] | ||||||||
Percentage of ownership of subsidiaries | 100.00% |
Uncategorized Items - site12292
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,300,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,300,000 |